Experts have expressed concerns about potential consequences for the UK economy due to ongoing attacks on shipping in the Red Sea.
Government models are reportedly assessing various scenarios, including the possibility of crude oil prices increasing by over $10 (£7.8) per barrel and a 25% rise in the cost of natural gas.
The Treasury is particularly wary of a potential energy crisis if disruptions extend to tanker traffic.
Recent price increases in Brent crude and US West Texas crude highlight the economic impact of the conflict.
US Secretary of State Antony Blinken warns of higher costs translating into increased prices for fuel, medicine and food globally.
Energy Live News has contacted the Treasury for comment.
