Scottish Labour leader Anas Sarwar has renewed calls to scrap the windfall tax - if the ceasefire in Iran restores stability and lowers energy prices.
After an initial drop in oil prices when the ceasefire was agreed, prices have crept back up as investors keep a close eye on the fragile situation in the Middle East.
The BBC reports global oil prices rose in Asian morning trade on Thursday, with benchmark Brent crude up 2.2% at $96.70 (£72.18), while US-traded West Texas Intermediate was 2.8% higher at $96.90.
Following a meeting between Chancellor Rachel Reeves and oil and gas industry leaders, it had looked likely the Energy Profits Levy (EPL) would be scrapped, unlocking £17.5billion of investment in the North Sea.
But yesterday it was reported Reeves shelved those plans when the Iran war and closure of the Strait of Hormuz sent oil prices soaring.
Sarwar though remains hopeful the ceasefire can stabilise the volatile situation and bring prices back down, which he said should mean the plans to scrap the windfall tax are resurrected.
The Times reports the Scottish Labour leader said: “We’ve got to get a lasting ceasefire. We have to get stability back into the energy markets. That means obviously free flow through the Strait of Hormuz as well.
“And when that price is driven down, then of course we should look at a more balanced approach when it comes to the energy profits levy.”
He continued: “The reality is there was going to be a movement on the EPL, but the war in Iran caused prices to spike.
“I think if we get that stability back to where we were before the conflict began, then, of course, I think there’s a case [for reform].”
In a speech this evening, the BBC reports Foreign Secretary Yvette Cooper will call for the Strait of Hormuz to be fully reopened to allow the toll-free safe passage of ships.
She will say: "This is an international shipping route, a transit route for the High Seas.
"No country can close these routes – it goes against the fundamental principles of the law of the sea."
She will add: "The full and unconditional re-opening of the Strait must be a central part not just of the current ceasefire but of the long term future for the region."
US President Donald Trump has said the US military will maintain a presence in the area until a "real agreement" is reached with Iran.
Posting on his social media platform last night, Trump said: “All U.S. Ships, Aircraft, and Military Personnel, with additional Ammunition, Weaponry, and anything else that is appropriate and necessary for the lethal prosecution and destruction of an already substantially degraded Enemy, will remain in place in, and around, Iran, until such time as the REAL AGREEMENT reached is fully complied with.”
Meanwhile, The Times reports investors placed bets totalling $950million on oil prices falling just hours before the ceasefire between the US and Iran was announced.
A combined 8,600 lots of Brent and US crude futures were sold at 7.45pm on Tuesday, according to data from the London Stock Exchange Group, less than three hours before President Trump called off his chilling warning that “a whole civilisation will die”.