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Mr Ellwood was speaking ahead of an emergency Cobra meeting to discuss shipping security in the Gulf after the seizure of UK flagged tanker Stena Impero. He admitted the Royal Navy is now

too small to fulfil its global role after audio footage between Iranian authorities and HMS Montrose moments before the tanker was seized revealed Tehran ignored warnings from the British

the warship. In the radio recording, officers aboard the Iranian vessel can be heard saying: “If you obey, you will be safe. “Alter your course immediately. I want to inspect the ship for

security reasons.” HMS Montrose replied: “You must not impair, impede, obstruct or hamper the passage of the Stena Impero. “Please confirm that you are not intending to violate international

law by attempting to board.” Mr Ellwood said the next prime minister would have to tackle the need for a significant increase in the Ministry of Defence budget immediately. He denied claims

Britain had “taken its eye of the ball” but told The Times: “The threats we’re facing are changing in front of us, the world is getting more complex. “If we are wanting to continue to play

this influential role on the international stage it will require further funding for our armed forces, not least the Royal Navy. “Our Royal Navy is too small to manage our interests across

the globe.” The Stena Impero and her 23 crew members are being held by Iranian forces after they were taken on Friday while passing through the Strait of Hormuz. Mr Ellwood said Britain is

now examining a series of options to respond to the crisis. He said: “Our first and most important responsibility is to make sure that we get a solution to the issue to do with the current

ship, make sure other British-flagged ships are safe to operate in these waters and then look at the wider picture. Asked about the possibility of sanctions, he said: “We are going to be

looking at a series of options. “We will be speaking with our colleagues, our international allies, to see what can actually be done.” Foreign Secretary Jeremy Hunt will update the Commons

on the situation this afternoon when he is expected to tell MPs what further measures the Government will take.