Keir Starmer's Resignation: Political Collapse and Trump's Prediction — What's Next for Markets?
UK Prime Minister Keir Starmer has announced his resignation. This event marks the culmination of a deep crisis within the Labour Party, triggered by the loss of over 1,000 seats in municipal councils during the May elections and widespread discontent among MPs. Around 100 members of parliament formally demanded he step down, which occurred on Monday. Starmer will remain as interim prime minister until a new leader is elected.
Trump Was Right: Energy Policy Proved Fatal
Notably, former US President Donald Trump publicly predicted this move a day before the official announcement. In his post on Truth Social, he pointed to the failure of Starmer's immigration and energy policies. The key mistake was the introduction of a moratorium in November 2025 on issuing new licenses for oil and gas drilling in the North Sea. This decision, presented as a step toward "green" energy, left Britain vulnerable to price spikes in commodity markets.
The conflict with Iran in early 2026 triggered an explosive rise in Brent oil prices — from $73 to nearly $114 per barrel. Regulator Ofgem has already announced a 13% increase in household bills starting in July: the average annual payment will rise from £1,641 to £1,862. According to the Oxford Smith School, even full-scale North Sea production would have reduced bills by only £16–82 per year. This would not have saved the government, but it demonstrated the complete helplessness of Starmer's course.
New Leader and the Cryptocurrency Vector
The main contender for the Labour leadership is Andy Burnham, who recently won the by-election in Makerfield with 54.8% of the vote. His position is strikingly different from his predecessor's policies. Burnham openly supports the development of digital assets and has stated his intention to make Manchester a hub for the crypto industry. This is a direct contrast to the Starmer government's March 2026 moratorium on cryptocurrency donations to political parties.
Prediction markets have already responded with a sharp increase in Burnham's chances. For the crypto community, this is an important signal: a change in leadership could radically alter the regulatory climate in the UK.
My expert opinion: Starmer's resignation is not just a political crisis, but a clear signal that a rigid "green" agenda without consideration of economic realities leads to collapse. For the cryptocurrency market, Burnham's potential arrival represents a window of opportunity. If he truly implements his plans for integrating digital assets, London could regain its status as a global crypto hub, lost due to the short-sighted policies of the outgoing prime minister.