On the 33rd day of the war in the Middle East, oil prices have fallen back following comments
from Donald Trump that U.S. military action could end in two to three weeks. The U.S. President
has also threatened again to leave NATO because of its unwillingness to join the attacks on Iran.
He told the Daily Telegraph that the military alliance was a paper tiger. Mr. Trump is due to
a televised address later today. Here, the cabinet has been discussing the impact of the war.
On his way into that meeting, Gatishik Mihal Martin was asked about those comments from President
Trump about when U.S. military action could end. I think that's two or three weeks too long,
and there is simply too much volatility around this war. It's extremely difficult to be certain
as to what will unfold. And so we would press far as early an end to this as possible because
the sooner this ends, I think, and the sooner we see de-escalation across the region,
then the greater the prospect of restoring some degree of normality, although it will take a
considerable degree of time. Well, for the very latest, let's have a word with our political
correspondent Mihal Lahan. Mihal, it's a week since the government announced a package of measures
to reduce fuel bills. Is there any suggestion that further measures could be on the way?
I think there is a sense that that may be necessary, but the government saying today, and Mihal
Martin saying clearly, he went into cabinet that in two or three weeks time, if this war is continuing
that you could see an energy shock, a hit the economy that it's at that point, things could become
really difficult that then the supply would be at a crucial, dangerous point economically,
as well as that, though even if there was de-escalation, I think there is a realization that the
damage done to infrastructure will means that there will be some difficulties in the period ahead,
but perhaps they would be lessened. It is at the end of May, I suppose, the government go back
to look at this again, but even though they were today nailing down the date of the budget for
October 6th, I think there are many sitting around the cabinet table who feel that at some point
long before then, it may be necessary to come forward with further measures.
Are there concerns about how expensive this could become for people right across the country,
because there is, we're told, a real danger of a significant rise in food prices,
and we know that the cost of living is already a very big issue for many people.
Yes, and that will be all part of the economic shock you're talking about food prices,
and then further down the line, there is a possibility that you could see things like
electricity prices going up again, and of course all that at a time where you already have about
at 300,000 in a year is going into this crisis. So for all those reasons, you can see the political
pressure building, government making the point this morning, though, that it is despite the global
volatility at a point where it is continuing to run surpluses, but those surpluses and those
reserves may well have to be dipped into before the budget, I think.
Miho, thank you, that was our political correspondent Miho Lahan there in Iraq, the studio.
