Labour's Collapse: Keir Starmer Resigns Amid Energy Crisis and Trump's Predictions
Keir Starmer's political career ended on Monday. The UK Prime Minister announced his resignation from the posts of head of government and leader of the Labour Party. This decision became an inevitable finale after a series of crushing defeats and an internal party rebellion.
Starmer's resignation is not just a change of leader, but a symptom of a deep crisis in the British political system. The Labour Party, which won a triumphant victory in the 2024 elections, lost all its credibility in just two years. The May local elections turned into a catastrophe: the party lost over 1,000 seats in municipal councils. About 100 Labour MPs officially demanded Starmer's resignation, making his continued stay in power impossible.
Notably, Donald Trump predicted this outcome a day before the official announcement. In his Truth Social post on June 21, he directly pointed to the failure of Starmer's migration and energy policies. Trump called on the UK to lift the ban on drilling in the North Sea, which he believed was a fatal mistake. And he turned out to be absolutely right.
The ban on issuing new oil and gas licenses, introduced in November 2025, left the country defenseless in the face of a global energy shock. The conflict with Iran, which began in early 2026, led to a sharp spike in Brent oil prices — from $73 to nearly $114 per barrel. Regulator Ofgem has already announced a 13% increase in household bills from July: the average annual payment will rise from £1,641 to £1,862. This is a direct blow to Britons' wallets and a key reason for the decline in Labour's ratings.
A study by the University of Oxford's Smith School showed that even full-scale production in North Sea fields would have reduced bills by only £16–82 per year. However, in a crisis, even this modest effect could have softened the blow. Instead, Starmer's government chose ideology over pragmatism, and the country paid a high price for it.
New leader and the future of the crypto industry
Now, the main contender for the Labour leadership is considered to be Andy Burnham, who won a convincing victory in the by-election in Makerfield with 54.8% of the vote. Burnham is known for his progressive stance on digital assets and Web3 technologies. He has openly stated his desire to turn Manchester into a hub for the UK's crypto industry.
His position sharply contrasts with the course of Starmer's government, which in March 2026 introduced a moratorium on cryptocurrency donations to political parties. If Burnham becomes the new prime minister, we can expect a radical overhaul of digital asset regulation. For British investors and crypto enthusiasts, this is undoubtedly a positive signal.
However, the oil shock and economic crisis will be the first serious test for the new leadership. Will Burnham cope with the challenge that Starmer could not handle? Prediction markets are already pricing in high odds of his victory, but reality may prove far more complex.
Expert opinion: Starmer's resignation is a classic example of how ignoring macroeconomic realities and adhering to "green" ideology at the expense of energy security destroys a political career. For the crypto market, the change of power in the UK could become a significant catalyst, especially if Burnham fulfills his promises to deregulate the sector. However, in the short term, the focus will shift to combating inflation and the energy crisis.