Chancellor Rachel Reeves is set to join an emergency virtual G7 meeting today as spiralling oil prices threaten to deepen the – already dire – cost of living crisis in British households.
Brent crude oil has surged past $116 a barrel ahead of the remote call, where Ms Reeves will be joined by Energy secretary Ed Miliband, who will speak with other G7 officials and politicians about the fallout from Iran’s closure of the Strait of Hormuz, the strategic shipping waterway.
Ms Reeves is expected to push G7 counterparts to follow Britain’s lead in accelerating the shift away from fossil fuels to more renewable sources, arguing it is the only lasting way to shield ordinary people from the volatility of the global energy market.
Meanwhile, the Prime Minister will be hosting his own meeting at No10 with energy suppliers, shipping and insurance experts.
Petrol prices have risen sharply since the US and Israel first struck Iran a month ago, though ministers have repeatedly played down the prospect of fuel shortages.
The Education Secretary Bridget Phillipson told broadcasters on Sunday that drivers should fill up their cars “as normal”.
The UK has yet to announce any measures to ease pressure on motorists or curb energy demand.
In contrast to Australia, which plans to halve fuel tax and Bangladesh which has ordered civil servants to cut lighting and air conditioning, as it grapples with the impact on a country that imports 95 per cent of its oil and gas, the Telegraph reports.
Stocks across Asia fell sharply overnight after Donald Trump threatened to seize Iran’s Kharg Island and the Yemen’s Houthis entered the conflict – though European markets fared better, with the FTSE 100 edging up 0.5 per cent and Germany’s Dax rising 0.1 per cent.
