Government prepared for ‘all scenarios’ following escalation of Iran war

The Government is prepared for all scenarios should the renewed conflict between Iran and the US affect energy prices, the Tánaiste has said.

US president Donald Trump declared the ceasefire deal between the countries “over” on Wednesday, after Iran targeted three tankers in the Strait of Hormuz waterway.

US forces hit around 90 targets across Iran overnight, while Tehran responded with attacks on Bahrain, Kuwait and Qatar.

Speaking to reporters in Brussels on Thursday, Simon Harris said economists in his department had previously mapped out a number of possible scenarios.

If the war was to escalate, he said even in the most severe scenario the “Irish economy continues to grow” and added “we’re prepared for all scenarios is the truth”.

Asked if the Government is considering new supports, Harris responded its decision not to end temporary excise cuts “immediately” was “the right one”.

“It was the right one at the time, it’s even more right now” he said, “to provide people with more breathing space”.

In March, the Government announced €250 million worth of measures in response to the fuel crisis sparked by the Iran war and the effective shutdown of the Strait of Hormuz trading route.

Three weeks later, in the wake of nationwide fuel protests, the Government announced a further reduction of duties on fuel.

Those measures are due to expire on July 31st, but last week that date was extended until August 31st, and higher rates will be reintroduced in a phased process between September and December.