In light of the military action in the Middle East, ICAEW has reached out to members to gauge the current impact on businesses and the potential effect of a prolonged conflict.

Close to 500 members responded, with 56% confirming that their business was already exposed to the conflict, and a further 29% saying it was too early to tell.

For UK businesses two-thirds said that higher energy costs were the key challenge, followed by supply-chain disruption (54%) and then staff-related challenges around security and travel (46%).

Alan Vallance, ICAEW Chief Executive, said: “Our data shows that rising energy costs and supply chain disruption are the biggest threats to businesses right now as the conflict in the Middle East continues to escalate.

“Surging gas prices and interruptions to major energy infrastructure, such as the Strait of Hormuz, means the pressure is only intensifying.”

When asked about what support government could offer in the event of prolonged conflict 48% of respondents from UK businesses agreed that support with energy bills would be most helpful.

Meanwhile, 40% suggested infrastructure for supply chain resilience and close to one-third recommended additional financial support, such as ensuring credit availability.

"The findings highlight the significant interdependence of UK businesses and citizens with the Middle East," said Vallance. "As well as how our economic fate is exposed to instability in the region."

Vallance called on the government to heed ICAEW members’ advice. He said: “If the war is prolonged, the UK government should stand ready to provide the liquidity and financing British businesses in the Middle East need to weather the storm.”