Attacks in the Red Sea have caused companies to avoid the shipping lane and take longer routes around Cape of Good Hope in Africa, threatening to drive up the cost of everyday products in the UK imported from overseas.

The expected Cabinet meeting comes after an emergency Cobra meeting this morning along with a meeting of the national security council.

Shapps accused Iran of being “heavily behind” the Houthi rebel attacks and said Tehran provided the militant group with “eyes and ears” for their missions.

“This cannot continue and we won’t allow it to continue so watch this space,” Shapps said at a press conference earlier this week.

Whitehall watchers have suggested that the reason for the Cabinet meeting will be to discuss a military response.

“You don’t hold an emergency cabinet meeting unless you’re considering a military response,” Sir William Patey, a former ambassador to several countries in the Middle East, told Sky News.

“The Americans have clearly put some military options on the table and have invited us to participate.”

According to the US, there have been as many as 27 attacks on international shipping since mid-November.

In an update during the Cabinet meeting, No10 confirmed Sunak called Egyptian President Abdul Fattah al-Sisi this afternoon.

A No10 spokesman said: “They discussed the concerning rise in Houthi attacks on commercial vessels in the Red Sea and the disruptive impact on global shipping, including through the Suez Canal.

“The Prime Minister said the UK would continue to take action to defend freedom of navigation and protect lives at sea.”