UK Chancellor Supports North Sea Drilling Amid Energy Policy Divisions

UK Chancellor Rachel Reeves has publicly endorsed drilling in the North Sea, creating a policy rift with Energy Secretary Ed Miliband. Reeves stated she is 'very happy' to support extraction at proposed new oil and gas fields, citing benefits for employment and tax revenue. This position contrasts with Miliband's ban on new exploration in British waters and his push for renewable energy transition. The intervention comes ahead of Miliband's decision on licensing for the Rosebank oil field and Jackdaw gas field. Reeves argued that domestic energy production is necessary to reduce reliance on volatile global markets, referencing disruptions from conflicts in Ukraine and the Middle East. She noted that court decisions had delayed drilling at these sites, not government policy. The Chancellor's comments align with calls from business leaders and opposition parties for expanded North Sea exploration amid rising energy prices. Meanwhile, Prime Minister Keir Starmer emphasized closer ties with the European Union for energy and security cooperation, while defending NATO amid U.S. President Donald Trump's criticism. The broader context includes market reactions to potential conflict de-escalation in Iran, with stock indices rising and oil prices falling on hopes for peace.