Taoiseach Micheál Martin has kept open the prospects of a package of cost-of-living supports in response to the hike in oil prices.
Speaking in Philadelphia on Saturday morning, Martin said the Government was “keeping everything under review. Obviously, we have to see how things evolve.”
He warned there could be “second-round inflationary impacts” from the crisis in the Gulf and the increase in oil prices.
“We understand that people are under a lot of pressure,” he said.
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Pressed on the time frame for any possible measures, the Taoiseach declined to be drawn, but said that the Government’s focus would be on “those most in need and those most impacted”. He said that the issue was “under very active review”.
The Taoiseach added that the situation in the Gulf and the impact on energy prices would be discussed by EU leaders in Brussels next week, and noted that individual member states have “flexibility” on taxes and levies in their own countries. He ruled out any reversal of last year’s cut on VAT for the hospitality industry, however.
Asked how he would approach his meeting with US president Donald Trump and if he would discuss the war in Iran, the Taoiseach said that Ireland wanted to see “a de-escalation ... and we want civilian lives protected”.
“We would like to see a resolution of this. Iran has been a very, very repressive regime, which has murdered thousands of their own citizens who took to the streets to seek freedom of speech and a democratic way of life,” he said.
He added that Iran’s pursuit of nuclear capacity had been a significant concern.
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Martin avoided saying if he would specifically raise the bombing of a school in Iran, thought to have been the result of an error by US forces, but that Ireland abhorred the killing of any innocent civilians and he would be “articulating the need for peace”.
He also said that he would stress to the US president that the economic relationship between Ireland and the US was mutually beneficial.
“We want to make it clear that it’s a two-way street,” he said, pointing to high levels of investment in the US by Irish companies, something he is expected to emphasise during Tuesday’s meeting.
He said he would also stress the importance of the US-EU relationship.
The Taoiseach is in Philadelphia on Saturday and Sunday before travelling to Washington DC in advance of a series of business engagements on Monday and his meeting with Trump in the White House on Tuesday.
He will deliver a speech at Villanova University on Saturday, before attending a dinner hosted by the Friendly Sons and Daughters of St Patrick, an Irish American organisation.
