Rachel Reeves will urge G7 allies to avoid energy protectionism amid concerns over supply chain disruptions from the blocked Strait of Hormuz. The chancellor warns against unilateral measures that would shift pressure to partners and weaken collective resilience in responding to economic fallout from the Iran conflict, which handles a fifth of global oil traffic.

UK officials worry the war could amplify cost of living pressures, with diesel stockpiles potentially depleted by mid-May if the conflict continues. The government advocates investing in renewables and nuclear power to exit the "rollercoaster" of global oil prices, while the Royal Navy prepares autonomous de-mining systems for the strategic waterway.

Energy traders warn supermarkets and refineries face stockpile reductions, while the Conservatives propose alternative energy bill reductions including removing VAT for three years, estimated at £94 savings per household. Kemi Badenoch will visit Aberdeen and an oil rig to outline these policies funded by scrapping green energy initiatives and public energy investments.