There will have been more than a few people keeping an eye on the fuel dial in the motor over the weekend: gambling on whether to keep going until after Tuesday’s Cabinet meeting – or instead fill up with some of the most expensive diesel or petrol in Christendom.
The widely flagged excise cuts are due to get sign-off in Government Buildings tomorrow – and will take some of the sting out of the pump prices. This, and a double fuel allowance, is the response to the escalating costs imposed by war in the Middle East.
In addition, following their meeting with the Minister for Transport last Thursday, the hauliers appear to have secured a tax-rebate scheme.
Coalition sources have been keen to say this is all time-tied and so on – but putting a timeline on the current turmoil looks like a mug’s game. The previous reductions in fuel excises – along with energy credits – proved very sticky even when the initial impact from the Russian invasion of Ukraine faded.
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Having all that corporation tax in your back pocket also makes it difficult to argue fiscal resources are under pressure. Minister for Finance Simon Harris has said he has to keep some powder dry because you wouldn’t know what next month might bring.
Despite Donald Trump’s comments on Friday that he might consider “winding down” operations – he and Iran then spent the weekend threatening to turn the power, oil and gas infrastructure of the Middle East into a smouldering heap.
He warned Iran had 48 hours to start letting oil and gas tankers through the Strait of Hormuz – or else the US would start striking power plants.
Iran’s response was that it would strike energy assets in neighbouring countries hosting US forces.
Trump’s “deadline” was due to expire close to midnight Irish time, but the US president on Monday then announced he had postponed his proposed strikes, saying there had been “productive conversations” about a “complete and total resolution” to the conflict.
However, the damage already inflicted in the region will start to feed through in all manner of things very soon.
In addition to more expensive oil, gas and electricity – the overall cost of living will reflect the impact of Trump and Israel’s “excursion”.
The markets aren’t optimistic about a swift resolution and early morning trade saw a further slide in stocks and government bonds. The price of a barrel of the black stuff edged upwards.
Officials look to frame Ireland’s response to crisis
Officials in the Department of Finance have been looking at all sorts of scary charts with different scenarios – and are due to bring forward a report on the macroeconomic challenge this all poses very shortly.
A new taskforce is also reported to be cracking on with efforts to fast-track Ireland’s renewable energy projects – but that is clearly for another day.
The Minister for Foreign Affairs has, meanwhile, been urging de-escalation – warning of the risks of a deepening crisis following an Israeli attack on an Iranian nuclear site – and the Iranian retaliation in kind.
Helen McEntee is concerned too with Irish peacekeeping soldiers stationed in Lebanon – where Israel has taken on Hizbullah and promised that weeks of conflict still beckons.
Ice agents deployed to US airports
In a slightly different security story, anyone planning on a trip to the US over the coming days might be interested in the news that Ice agents are to be deployed at airports there.
A partial US government shutdown has seen hundreds of customs and immigration workers leave their positions. The Department of Homeland Security has blamed the Democrats and said the deployment of agents was needed to speed up the screening of passengers.
The move is billed as an attempt to ease long lines at 14 airports during a busy period of the year. Trump has also said they will “do security like no one has ever seen before”.
Hakeem Jeffries, the House minority leader, was fairly blunt in his assessment over the weekend.
“The last thing the American people need is for untrained Ice agents to be deployed at airports across the country potentially to brutalise or to kill them,” he warned.
