The government is concerned ongoing attacks on shipping in the Red Sea could further shrink the UK economy.
The BBC understands the Treasury has modelled scenarios including crude oil prices rising by more than $10 a barrel and a 25% increase in natural gas.
On Thursday night, the UK launched airstrikes against the Houthi rebels.
On Thursday night, the UK launched airstrikes against the Houthi rebels.
On Friday, the price of Brent crude – the international benchmark for oil prices – rose by 2% to $78.94 per barrel while US West Texas crude increased by 2.1% to $73.55.
The boss of shipping giant Maersk said “significant disruption” to global trade was already being felt “down to the end consumer”.
Prior to the military strikes on Thursday, Maersk chief executive Vincent Clerc had called for a “stronger mobilisation” to repel the attacks, which he said would lead to higher prices for customers.
Currently, about a quarter of the world’s shipping containers are being diverted from the area.
According to the White House, around 15% of global seaborne trade passes through the Red Sea. This includes 8% of global grain, 12% of seaborne oil and 8% of the world’s liquified natural gas.
The government is concerned ongoing attacks on shipping in the Red Sea could further shrink the UK economy.
On Thursday night, the UK launched airstrikes against the Houthi rebels.
The BBC understands the Treasury has modelled scenarios including crude oil prices rising by more than $10 a barrel and a 25% increase in natural gas.
On Friday, the price of Brent crude – the international benchmark for oil prices – rose by 2% to $78.94 per barrel while US West Texas crude increased by 2.1% to $73.55.
On Thursday night, the UK launched airstrikes against the Houthi rebels.
On Thursday night, the UK launched airstrikes against the Houthi rebels.
On Friday, the price of Brent crude – the international benchmark for oil prices – rose by 2% to $78.94 per barrel while US West Texas crude increased by 2.1% to $73.55.
The boss of shipping giant Maersk said “significant disruption” to global trade was already being felt “down to the end consumer”.
Prior to the military strikes on Thursday, Maersk chief executive Vincent Clerc had called for a “stronger mobilisation” to repel the attacks, which he said would lead to higher prices for customers.
Currently, about a quarter of the world’s shipping containers are being diverted from the area.
According to the White House, around 15% of global seaborne trade passes through the Red Sea. This includes 8% of global grain, 12% of seaborne oil and 8% of the world’s liquified natural gas.
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