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A Cabinet minister tried to cool alarm about Iran's ability to hit the UK with long-range missiles today.
Steve Reed insisted the government is 'perfectly capable' of defending the country, following signs Tehran can fire ballistic missiles much further than previously believed.
The Communities Secretary also played down the need for fuel rationing as the Middle East crisis escalates, although he admitted there were 'contingency plans'.
The appeal for calm came after Iran launched an attack on Diego Garcia, the joint US-UK base in the Indian Ocean.
Although neither missile hit the target, the distance of 2,360 miles was well beyond the 1,240 miles that had been regarded as the outer limit of the regime's reach.
Israel pointed out that Paris, 2,609 miles away, and even London – 2,750 miles – are potentially within Iran's range. Some strategists fear the country can use its Simorgh space launch technology to extend its reach.
In a ballistic attack, defence experts say Britain would be forced to rely on American SM-3 defence systems stationed across Eastern Europe, or the Patriot missiles used by the Germans, to intercept rockets.
Steve Reed insisted the government is 'perfectly capable' of defending the country, following signs Tehran can fire ballistic missiles much further than previously believed
An aerial view of Diego Garcia, which faced an attempted rocket attack this weekend
Donald Trump has threatened to launch strikes on Iran's civil power plants in the latest escalation of the conflict
The attempted strike on Diego Garcia came as Keir Starmer extended permission for the US to use British bases to launch attacks on the Strait of Hormuz to protect shipping from Iranian assaults.
In broadcast interviews this morning, Mr Reed confirmed that one missile had fallen short of Diego Garcia, while the other had been intercepted.
He told BBC's Sunday With Laura Kuenssberg programme: 'There is no specific assessment that the Iranians are targeting the UK or even could, if they wanted to.
'We have the finest military in the world. We are perfectly capable of protecting this country.'
Mr Reed said Israel's statement about European capitals being in range was 'conditional', adding 'there is no assessment to substantiate what's being said'.
The minister was also grilled on the possibility of fuel rationing, with the Strait of Hormuz still blocked and no sign of the conflict ending soon.
Mr Reed insisted there was no requirement for rationing 'as it stands', but stressed there is 'always a contingency plan'.
'There's no need to ration fuel. People should go around and buy their fuel just like they always would,' he told Sky News.
'If the situation were to change, then the Government would look at what was required in that circumstance.
'We did intervene when it came to heating oil, because we saw the prices escalating and people were seeing their bills doubling and tripling overnight. We can't have that, so we stepped in to support people.'
Government sources said the attack on Diego Garcia happened before an official statement revealing the US military would be allowed to use the base for strikes aimed at reopening the Strait.
Donald Trump has announced that he will hit civil power generation facilities in Iran as soon as tomorrow unless the critical channel - which carries around a fifth of global oil supplies - is opened. That is a tactic that Britain and other Western countries have condemned Russia for using against Ukraine.
IDF chief of staff, Lt Gen Eyal Zamir said last night: 'Iran launched a two-stage intercontinental ballistic missile with a range of 4,000km towards an American target on the island of Diego Garcia.
'The missiles were not intended to hit Israel. Their range reaches the capitals of Europe. Berlin, Paris and Rome are all within direct threat range.'
The IDF later added that London is also in range.
A Khorramshahr-4 missile is launched at an undisclosed location in Iran
Economists have estimated the 'Trumpflation' shock from the Iran war could leave the Chancellor scrambling to fill a £20billion shortfall in the public finances.
Higher inflation from soaring oil and gas prices will mean bigger public sector pay settlements, extra welfare spending and increased borrowing costs for the government.
With the crucial Strait of Hormuz still shut and the conflict showing no sign of easing, Ms Reeves is coming under pressure to put together an energy bills bailout for desperate households when the cap changes again in July.
But doubts have been raised over how she can find the money to help families with their soaring costs.
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