A Clare economist is expecting the standard of living to decline in the event of a prolonged conflict in the Middle East.
It comes as Donald Trump has implored other nations to help the US secure the Strait of Hormuz in an attempt to stabilise global oil supplies.
Roughly 20% of the world’s oil supply is transported through the Strait of Hormuz in the Persian Gulf, but since Iran has enforced a naval blockade on the route in response to US-Israeli attacks, global fuel prices have soared.
Donald Trump has since called on other NATO countries to help secure the strategic shipping route and has promised to unveil his coalition in the coming days.
This is despite the EU’s Foreign Policy Chief Kaja Kallas stating this week that member states would reject military involvement in the war.
Newmarket-On-Fergus native and Professor of Politics at Dublin City University, Donnacha Ó’Beacháin believes there will be a protracted conflict and that the longer it continues, the more advantages for Iran.
The US President is taking a staunchly different view, however, and claims oil prices will drop ‘like a rock’, as he targets an end to the war in Iran in the coming weeks.
Iran appears to be digging it’s heels in though, having launched more missiles at Israel overnight following the death of two key regime figures.
The White House in turn says it has targeted Iranian missile sites near the Strait of Hormuz.
Arsenio Dominguez, head of the International Maritime Organisation, says they’re holding an extraordinary meeting today to discuss the situation:
A leading economist, meanwhile, is expecting a reduction in Ireland’s standard of living if the war drags on.
The Irish Farmers Association is also warning the cost of food will rise, with much of the world’s fertiliser supply also dependent on access to Hormuz.
Ennis native and Assistant Professor of Social Policy at UCD, Micheál Collins says consumers should anticipate an inflationary period due to the global uncertainty.
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