Rationing fears are rising today as a minister admitted the possibility cannot be ruled out amid chaos in the Middle East.
Treasury minister Dan Tomlinson said the Government is ‘monitoring’ the situation ‘carefully’, with global supplies under huge pressure.
Around a fifth of the world’s oil passes through the Strait of Hormuz, but it has been effectively shut by Iran after the US-Israeli launched attacks.
Pump prices have already been soaring, while there is alarm that the energy price cap could rise dramatically when it changes again in July.
The blockage could have a host of knock-on effects, including on medicine stocks. Downing Street appealed for people not to panic buy, insisted that garages are ‘well stocked’. ‘Any suggestion otherwise is incorrect,’ a spokesman said.
Donald Trump has appealed for countries such as the UK, France, Germany, Canada and even China to help tankers pass through the critical Strait.
But the appeal has been knocked back while the conflict is active, and it is unclear how any patrols would work in practice.
Concerns have been mounting at the uncertain timeline for the military action, with claims that it could drag on till September – although Mr Trump himself has said he ‘doesn’t believe it will be long’.
As Brits brace for the fallout from the Middle East chaos:
- Keir Starmer and Mr Trump are clashing over the war on Iran, with the UK resisting US demands for warships;
- The PM is hosting Volodymyr Zelensky in Downing Street as he tries to stop soaring energy prices giving a ‘windfall’ to the Russian war machine;
- Nigel Farage has suggested the UK should heed US calls for assistance in reopening the Strait of Hormuz;
- Rachel Reeves has hinted that oil and gas projects in the North Sea could be signed off soon amid the turmoil.
Asked if the Government was making contingency plans for rationing, Mr Tomlinson told Times Radio this morning: ‘We will monitor the situation, and we’ll monitor it carefully.’
He said: ‘At the moment, it is too early to tell what the impact of this crisis will be in the coming months.
‘What we have seen in the last two weeks is that there has been sharp increase in the cost of oil used to heat people’s homes, and the Government has stepped in and said we’re going to provide £50million of support for people across the UK who are reliant on heating oil.’
Former No10 energy expert Nick Butler said yesterday that the effective closure of the Strait would mean a global ‘shortage’ of oil within weeks.
Prof Butler, who was an adviser to Gordon Brown and worked for BP for nearly three decades, insisted ministers must be ready to protect the ‘crucial sectors’ of the economy.
‘I think it does mean a form of rationing,’ he told the BBC.
‘I think we learnt from the tanker drivers dispute in 2000 that oil and gas supplies are absolutely crucial to the running of the economy and you can’t bring on new supplies quickly…’
He added: ‘In the short-term, we have to look at what supply we have and look at the crucial sectors, the health service, food supply, hospitals, those are key elements that must be protected.
‘And beyond that, it is then for the Government to decide how to ration what is left if we get to that situation.’
The US President vented his frustration with the PM again last night, describing the UK’s reluctance to get involved in the Middle East as ‘terrible’.
He also claimed that Sir Keir had offered to send two aircraft carriers to the region – something that Downing Street denied. Only one of the UK’s carriers is currently operational, and that is due to be deployed to the Arctic.
The barbs came as European powers batted away Mr Trump’s call to send warships to reopen the crucial Strait of Hormuz.
Sir Keir insisted yesterday that the UK would not get dragged into a ‘wider war’ after the US and Israel launched attacks. France and Germany have also dismissed the idea of taking an active role while conflict is raging.
Mr Trump’s annoyance boiled over again last night, presenting Sir Keir with another major diplomatic headache.
‘I was very surprised with the United Kingdom. Two weeks ago I said, ‘Why don’t you send some ships over?’ And he [Starmer] really didn’t want to do it,’ the President said.
‘You’re our oldest ally, and we spend a lot of money on Nato and all these things to protect you. I mean, we’re protecting them. I think it is terrible.
‘I was not happy with the UK. I think they will be involved, maybe, but they should be involved enthusiastically. We requested two aircraft carriers which they had. And he did not really want to do it. And after the war had essentially ended, I mean after they were obliterated, he said ‘I would like to send the aircraft carriers’.
‘I said ‘I don’t need them after the war has ended, I needed them before the war’.’
Seemingly contradicting himself, Mr Trump added that he approached Britain, France and others ‘not because we need them, but because I want to find out how they react’.
Last night in the Oval Office, Mr Trump renewed his criticism. He said: ‘The UK was sort of considered the Rolls-Royce of allies, right? I said [to Sir Keir] it would be really helpful if you’d send over a couple of ships, and if you have some minesweepers.’
‘The Prime Minister is a nice man. He says ”Well, I’d like to ask my team.” I said ”You’re the Prime Minister, you can make a decision”.’
Even if Britain wanted to send a warship, the two that could be deployed, destroyers HMS Dauntless and HMS Duncan, are being prepared for a crucial Nato exercise in the High North where they are expected to escort the aircraft carrier HMS Prince of Wales.
At a Westminster press conference this morning Mr Farage said that the UK’s navy was too weak to help the US.
‘When it comes to aiding the Americans in freeing the Strait of Hormuz, well, I think in many ways we ought to. I think it is in our national interest to keep the oil flowing, but we can’t. We haven’t got the assets,’ he said.
‘So I think the first very big lesson that comes out of all of this is that we have denuded the Royal Navy and our forces to such an extent that, frankly, we’ve been humiliated on the world stage.
‘Our defence spending for next year is due to be just a fraction over 2% and we’re going to have to find ways to significantly and rapidly up that budget.
‘To be fair, this is not all the fault of this Labour Government. Fourteen years of Conservative government have run down our armed forces to a state, frankly, as I say, of total global embarrassment.’
