Starmer says officials deliberately withheld information about Mandelson’s vetting before his proposed posting to Washington. He faced a tough Commons session, ordered an inquiry, and the sacked FCDO chief will testify, amid unease on Labour’s benches.

Economists warn tensions centred on Iran will push up energy and shipping costs, keeping US inflation high even after conditions ease. Dearer petrol and insurance on key sea lanes could slow growth, strain household budgets and complicate the Fed’s stance into election season.

Starmer stands firm amid a vetting row, blaming the Foreign Office for mishandled checks linked to a proposed role for Lord Mandelson. He will address MPs, aims to tighten procedures and resists calls to reverse course as unease rises within Labour.

Keir Starmer faces claims he misled MPs after it emerged Lord Mandelson was blocked by security vetting for a planned US role. No 10 says ministers were unaware. Opponents demand the release of vetting advice and warn that, if the PM knew and denied it, he should resign.