“Tomorrow, I will meet with our North Sea industry leaders to discuss the implications that they face and work with them to manage this uncertain period.” Gas prices have spiked and stock market indexes tumbled as the conflict between Iran and the US and Israel continues, but Iran warned it would cause further economic chaos. An Iranian official said his country would “set fire” to anyone trying to pass through the key Strait of Hormuz shipping route.

In the UK, the FTSE 100 index fell by 2.6% while stocks markets in France and Germany also dropped. The UK gas price surged by more than 46%, following sharp gains on Monday, pushing it to it highest price for three years. Brent Crude Oil climbed by more than 5% to just over $81 a barrel.

“In an increasingly dangerous world, I am proud to be the Chancellor that is delivering the biggest uplift in defence spending since the Cold War, with £650 million committed in January to upgrade our typhoon fighter jets, a new Royal Navy frigate launched from Rosyth last week, and just yesterday, our £1 billion helicopter deal with Leonardo.

“I am in no doubt about Britain’s ability to navigate the challenges we face.

“The plan that I have been driving forward since the election is the right one – stability in our public finances, investment in our infrastructure including our Armed Forces, and reform for Britain’s economy.”

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