The Guardian Business EN

Starmer adviser urges ministers to look at profits cap for energy and petrol firms

PM’s ‘cost of living champion’ calls for consideration of temporary measure to prevent profiteering from Iran warThe government’s top cost of living adviser has called on ministers to explore a temporary cap on the profits of energy and petrol companies to prevent them from cashing in excessively on the war in the Middle East.Richard Walker – a Labour peer, chair of Iceland supermarkets and the prime minister’s “cost of living champion” – said he had asked the government to examine limiting how much businesses were able to benefit from higher energy prices after Iran’s blockade of the strait of Hormuz, a crucial shipping route for Europe’s oil and gas, and the wider conflict in the region. Continue reading...

Mar 22, 2026 &03262222202631; 13:26 UTC www.theguardian.com Trending 2/5

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Negative for markets

Sentiment score: -40/100

Moderate impact Short-term (days)

WHAT THIS MEANS

The call for a temporary profits cap on energy and petrol firms by a UK government adviser aims to curb potential profiteering amid rising tensions from the Iran war, which could increase regulatory pressures on these sectors and limit profit margins. This development introduces uncertainty for energy companies, potentially leading to stock volatility as investors assess the likelihood of implementation. Overall, it highlights ongoing geopolitical risks that could influence global energy prices without immediately altering market fundamentals.

AI CONFIDENCE

60% High

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

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Oil (WTI Crude)

CL=FCommodity

High volatility expected

The proposal for a profits cap adds regulatory uncertainty to oil prices, which are already influenced by Middle East tensions, potentially leading to short-term fluctuations as markets weigh the risk of reduced profitability for energy firms.

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.PA

.PAIndex

Expected to decline

European indices like the CAC 40 may face downward pressure due to the potential impact on energy stocks within the region, as this regulatory threat could erode investor confidence amid broader economic concerns.

PRICE HISTORY

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⚡ SUGGESTED ACTION

Consider reducing exposure to energy commodities and related stocks in the short term due to potential regulatory headwinds; monitor for official government announcements before making adjustments, and hedge with options if volatility increases.

KEY SIGNALS

Regulatory risk from profits cap proposalGeopolitical tensions in the Middle East

SECTORS INVOLVED

Energy

Analysis generated on Mar 22, 2026 at 19:44 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by The Guardian Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

Starmer adviser urges ministers to look at profits cap for energy and petrol firms

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