𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The UK’s oil and gas sector has been pleased to hear talk of a ceasefire in the Middle East, the head of the offshore energy trade body has said.

With Offshore Energies UK (OEUK) beginning its annual conference in Aberdeen on Tuesday, the industry group’s chief executive David Whitehouse noted there has already been a drop in oil prices.

US President Donald Trump announced a ceasefire between Israel and Iran overnight, which if implemented would bring an end to 12 days of aerial strikes between the two countries.

Israel’s Prime Minister Benjamin Netanyahu said his nation had agreed to the bilateral ceasefire in co-ordination with Tehran.

Iran’s foreign minister Abbas Araghchi said his country would halt its retaliation if Israel ceased its attacks.

However, Israel continued to issue warnings of ballistic missile attacks from Iran on Tuesday morning, while also carrying out air strikes in Iran.

Speaking to the BBC’s Good Morning Scotland radio programme, Mr Whitehouse said: “Events in the Middle East are of global significance.

“There’s a real human element to that, there’s many people from Scotland working in the Middle East because of our domestic oil and gas sector.

“A volatile situation – I think people have been pleased to hear the news overnight of a ceasefire.”

The conflict between the two regional powers led to fears Iran could effectively close the Strait of Hormuz, the strategic sea lane through which much of the world’s oil and gas is transported.

Mr Whitehouse continued: “It’s true the Strait of Hormuz carry approximately 20% of the world’s oil and gas supplies, and disruption there would be significant.

“But oil prices have actually remained relatively stable and we’ve seen a reduction overnight.”

The chief executive said his industry would continue to argue that “energy security is national security”, noting that the UK is currently importing record amounts of energy.

The Government must support oil and gas as well as renewables sectors, in order to “put real value back into the economy”, he said.

The UK oil and gas industry has been calling for continued North Sea licences and changes to the windfall tax.

The UK Government expected to outline its policies in the autumn following two major consultations.

A recent report from the OEUK said that with supportive policies, the North Sea could produce half of the oil and gas the UK needs on the journey to net zero between now and 2050.

The OEUK conference in Aberdeen was met with protests from climate campaigners Extinction Rebellion, who accuse oil companies of “greenwashing and fossil fuel lobbying in Scottish politics”.

Some of the activists dressed as Daleks who were “holding petrol nozzles as exterminators”.