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Government ramps up planning for possible supply shortages from Iran war

The UK government is stepping up plans to address potential shortages resulting from the Iran conflict.

Oil prices have risen since the start of the US-Israeli war against Iran, driven by the closure of the Strait of Hormuz, a key shipping route that once carried a fifth of global oil and natural gas.

The Prime Minister will chair another meeting of the Cabinet committee set up to manage the impacts this Tuesday, following last week’s session of the Middle East Response Committee.

A separate group of emergency ministers, led by Prime Minister Darren Jones’ Chief Secretary, also meets twice a week.

The Strait of Hormuz was once a major shipping route through which one-fifth of global oil and gas was transported.
The Strait of Hormuz was once a major shipping route through which one-fifth of global oil and gas was transported. (Reuters)

They focus on live monitoring of stock levels and what plans are in place for supply chain disruptions.

The government is trying to calm the public by urging drivers to continue filling up and driving as usual and not to change travel plans due to fears of possible jet fuel shortages.

There are also fears that the war could hit stocks of carbon dioxide (CO2), which is used in the food industry and breweries to carbonate drinks, for defense purposes and for medical uses such as MRI scanning.

Mr Jones said: “This is not our war. The government has made the right call to stay out of the conflict and take defensive measures solely to protect the UK’s interests.”

“We are taking action now to prepare for and, where possible, mitigate the impact of conflict on our economy and internal security.

“The Prime Minister wants to see the Strait of Hormuz reopened free of charge as soon as possible. The UK is working tirelessly with our international partners to find a lasting solution to this crisis and minimize the knock-on impact on households.”

Mr Jones will seek to emphasize that Britain is well placed when he speaks to broadcasters on Sunday, highlighting how Sir Keir Starmer’s administration is working directly with businesses to limit disruption and keep prices low.

UK airlines have insisted they are not currently seeing jet fuel shortages as they have purchased jet fuel in advance and keep stock at airports, but the Government has said it is “closely monitoring” stocks.

Airports will make it easier for airlines to cancel flights without risking losing their allocated “slots” – the scheduled times for take-off and landing that some UK airports assign to airlines – if fuel shortages prevent them from flying.

The Government is also planning to temporarily relax laws requiring airlines to operate partial full flights from airports in the UK, The Times reported.

This would allow flight schedules to be consolidated months before any potential fuel shortage, meaning fewer flight options may be available but minimizing disruptions and last-minute cancellations, the newspaper said.

Supermarkets said they were working with the Government to help plan for a worst-case scenario in which the ongoing war could lead to shortages of carbon dioxide used by food producers.

At the outbreak of war, the Government provided funds to restart the Ensus bioethanol plant, which produced CO2 as a byproduct to supplement gas supplies.

They are taking steps to weaken the link between electricity and gas prices to protect households and businesses from price increases.

Leaked government plans setting out a plausible worst-case scenario have suggested there could be shortages of some foods on supermarket shelves if the Strait of Hormuz remains closed during the summer months.

The Liberal Democrats have called for a bill to be included in the next King’s Speech to put food safety at the top of the Government agenda.

Lisa Smart, the party’s Cabinet Office spokeswoman, said: “The government also needs to wake up and provide more support for people who can’t afford the very high cost of transport, which is why we’ve proposed a 10p cut to fuel duty and cuts to public transport costs to protect Brits’ pockets from Trumpflation.”

Meanwhile, US President Donald Trump said on Saturday that he had told envoys not to go to Pakistan for further talks with Iran after the White House said Steve Witkoff and Jared Kushner would go to Islamabad to revive ceasefire talks.

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