US war on Iran was a 'mistake' says UK chancellor Rachel Reeves

The US made a "mistake" by ending diplomatic negotiations with Iran and entering into military conflict, Chancellor Rachel Reeves has said, voicing sweeping criticism of the war.

"The best economic policy now, not just for the UK, but globally, is to de-escalate," the chancellor told CNBC's Invest in America forum.

The UK government has said it will not play any role in the US's military blockade of the key Strait of Hormuz, designed to put additional pressure on Iran.

Asked whether the UK and US's growing differences over the conflict had affected the "special relationship" between the two countries, Reeves said no, but added: "Friends are allowed to disagree".

This week the International Monetary Fund (IMF) warned that the US-Israel war with Iran could plunge the global economy into recession, with the UK set to be the hardest hit of the world's advanced economies.