Shares in Tesco PLC (LSE:TSCO) and J Sainsbury PLC (LSE:SBRY) opened higher on Wednesday as Rachel Reeves met the chief executives of the UK's biggest supermarkets to assess the risk of food price rises and supply shortages stemming from the Middle East conflict.
Tesco shares were up 1.48% and Sainsbury's 1.19% as the chancellor sat down with the two grocers alongside Morrisons to gauge the potential impact on household costs in the coming months.
A Treasury source described the session as a fact-finding exercise aimed at identifying supply squeezes caused by the conflict and understanding its likely effect on the cost of living.
Asda's executive chair Allan Leighton did not attend but called on the government to act swiftly to support farmers and reduce fuel costs, warning that higher food prices were inevitable.
Sainsbury's chief executive Simon Roberts has said prices are unlikely to rise until the summer, with long-term energy contracts and fertiliser stockpiles providing a short-term buffer.
UK growers are less sanguine, with producers of tomatoes, cucumbers and peppers warning that surging energy costs could force some to halt production entirely, potentially leaving gaps on supermarket shelves.
Tesco opened 0.4% higher, with Saisbury up 0.8% in early deals.