Energy prices on the Isle of Man are unlikely to spike in the immediate aftermath of the escalating conflict in the Middle East, Tynwald has been told.

Chief Minister Alfred Cannan said government-owned Manx Utilities had already secured energy supplies at fixed prices, meaning electricity bills are expected to remain stable in the short term.

The news comes as tensions in the Middle East have intensified following military strikes involving the US, Iran and Israel, raising global concerns about energy markets and supply chains.

Speaking in response to questions from Arbory, Castletown and Malew MHKs Tim Glover and Jason Moorhouse, Mr Cannan said Manx Utilities was well-placed to weather any short term volitility after purchasing energy at what he described as a settled price.

He also said the island’s position was very different to the situation that followed Russia’s invasion of Ukraine in 2022, when wholesale energy costs surged and the government had to subsidise electricity bills.

While electricity prices appear protected for now, the Chief Minister warned the biggest short-term impact of the conflict was likely to be on oil and fuel costs.

Island fuel supplier Manx Petroleum has already warned customers it cannot provide indicative prices for new orders because of volatility in global markets.

The company said that while the island had so far been insulated from some of the increases seen in the UK, the next shipment of fuel could arrive at a significantly higher cost unless the situation stabilises soon.

Mr Cannan said the government was also in contact with Islands Energy Group, the parent company of the island’s gas supplier Isle of Man Energy, to understand whether there could be any future cost pressures.

He told Tynwald the company had also made forward purchases to lock in gas supplies at pre-conflict prices.

Alongside energy costs, the government is also monitoring possible wider economic implications.

Mr Cannan said there could be concerns about longer-term knock-on effects, including potential cost pressures on goods such as fertiliser and medicines, as well as risks to Manx businesses operating in the region and Manx-registered ships.

However, he stressed that no major concerns had been identified so far.

To ensure developments are monitored closely, the Chief Minister confirmed the Economic and National Strategy Board will now meet weekly rather than monthly.

The board - which includes the Chief Minister, Treasury Minister, Enterprise Minister and Deputy Chief Minister - will assess any economic, social and security implications for the island as the situation develops.

Mr Cannan said it was too early to determine whether government support would be required if costs rise, but protecting vulnerable residents would remain a priority.

He said existing measures such as winter fuel payments could be used to direct assistance if needed.

But he urged caution, telling Tynwald the government should avoid ‘short-term decisions or knee-jerk reactions’ until the longer-term impact becomes clearer.

‘The situation is evolving rapidly,’ he said. ‘We will continue to act calmly, prudently and in the best interests of the people of the Isle of Man.’