Chancellor Rachel Reeves will hold talks with North Sea industry leaders today as the UK assesses the economic fallout from the escalating situation in the Middle East following US strikes on Iran.

The meeting comes after the Chancellor used her Spring Statement on Tuesday to point to the growing instability in the region and the potential knock-on effects for the UK economy and energy markets.

Alan Stewart, a partner at accountancy and advisory firm MHA, said: “Chancellor Rachel Reeves’ decision to meet North Sea oil and gas leaders underlines how closely energy security and fiscal policy are now intertwined.

“Heightened tension in the Middle East inevitably sharpens focus on the resilience of domestic supply and the role of the UK Continental Shelf within that framework.

“It also reopens questions around the Energy Profits Levy and the longer-term competitiveness of the UK fiscal regime. For operators and the wider supply chain, clarity and consistency remain critical.

“The outcome of the Chancellor’s discussions with industry leaders will be closely watched across the sector, given the potential for lasting implications.”