Fuel relief package: 20c diesel cut, 15c petrol cut until May; fuel allowance to double and diesel rebate scheme for hauliers agreed

Fuel relief package: 20c diesel cut, 15c petrol cut until May; fuel allowance to double and diesel rebate scheme for hauliers agreed Follow the Irish Independent's liveblog below Key updates BREAKING: Trump instructs Dept of War to postpone military strikes against energy infrastructure Explainer: Price hikes, outlook cuts - what airlines are doing as fuel costs surge Senan Molony: Why Simon Harris must ‘go big or go home’ when it comes to Government’s fuel package Minister for Foreign Affairs Helen McEntee said risk of escalation in the Gulf remains 'grave' Irish hotels report spike in queries as war in Middle East and rising costs drive holidaymakers back to the staycation Eva Marie Gibney 20c diesel cut and 15c petrol cut from midnight tomorrow until May Tánaiste Simon Harris will bring forward proposals tomorrow to cut excise duty on diesel by 20 cent and by 15 cent on petrol until end of May. These excise measures will take effect from midnight tomorrow subject to a financial resolution being passed in the Dáil. With expected changes to the NORA levy, this will mean an effective cut in Government levies of 17 cent on petrol and 22 cent on diesel. There will also be a diesel rebate scheme for hauliers and bus operators which will be backdated and keep supply chains functioning. Mary Regan Fuel allowance to be doubled to tackle huge spike in prices for consumers Along with the cut in excise duty on petrol and diesel, government leaders have also agreed to double the fuel allowance. The weekly payment will rise from €38 per week to €76 weekly for the 470,000 people in receipt of the allowance. The fuel allowance season was due to end on March 31, but will be extended into April, the Irish Independent understands. Mary Regan The weekly payment will rise from €38 per week to €76 weekly for the 470,000 people in receipt of the allowance. The fuel allowance season was due to end on March 31, but will be extended into April, the Irish Independent understands. Mary Regan Eva Marie Gibney NORA levy suspension to bring immediate relief on fuel costs It is understood the Minister for Transport has secured supports for hauliers, coach operators and motorists to help with volatile fuel prices. The National Oil Reserves Agency (NORA) levy is to be suspended for two months, reducing it from 2 cents per litre to 0 cent. The temporary measure will ease costs for motorists, hauliers, transport operators, and households purchasing home‑heating oil. The tax is used to fund the activities of NORA, primarily in the maintenance of the State’s strategic oil reserves. There will be flexibility built into the Government's response as the situation continues to evolve. The National Oil Reserves Agency (NORA) levy is to be suspended for two months, reducing it from 2 cents per litre to 0 cent. The temporary measure will ease costs for motorists, hauliers, transport operators, and households purchasing home‑heating oil. The tax is used to fund the activities of NORA, primarily in the maintenance of the State’s strategic oil reserves. There will be flexibility built into the Government's response as the situation continues to evolve. Mary Regan Eoghan Moloney Trump says Iran wants a deal and claims US holding talks with ‘respected’ leader Eva Marie Gibney Taoiseach welcomes Trump’s 'postponement' of Iran strikes but won't say if move will influence fuel‑price measures Micheál Martin has welcomed the announcement by Donald Trump that the US has "postponed" military strikes against energy infrastructure in Iran, following talks with Tehran. But the Taoiseach would not be drawn on whether the announcement would affect the Government's imminent measures to tackle rising fuel prices. The US president had threatened to obliterate Iran's power plants if the country did not reopen the vital Strait of Hormuz by just before midnight on Monday night. However, in a post on his Truth Social platform, Mr Trump said he would delay the strikes by five days following "very good and productive conversations" with Tehran over the previous two days. Coalition leaders are due to meet this evening to discuss a package of measures to help with the rise in energy and fuel prices caused by the US and Israel's war in Iran. That package of measures is set to be announced tomorrow. This morning, Mr Martin was in Walkinstown, Dublin as he and Housing Minister James Browne announced plans for the Land Development Agency (LDA) and the O'Flynn Group to deliver 542 new homes in the area. Speaking to reporters, Mr Martin said: "I welcome the announcement by the American president that they have postponed any attacks on Iranian oil and gas infrastructure. "It's critical that spreads across the region. It's critical that the war ends." Following Mr Trump's announcement, crude oil prices dropped, with Brent crude oil falling by up to 10pc, later settling at around 8pc lower at just under $104 a barrel. Asked if this would affect the Government's plans, Mr Martin said they are looking at "temporary, targeted measures". He said rising fuel prices have "already had an impact on people", but said he would not get "into specifics" about whether Monday's drop in oil prices would affect the planned supports. "The figures are volatile, we know that," he said. "They've been up and down." The Taoiseach also said there needed to be "a more sustained engagement with the haulage industry". He was addressing reports that hauliers had said short-term measures would not help their sector, which he described as "a key part" of Irish trade. Mr Martin said the plans being announced on Tuesday need to be "measured and informed". He added: "I feel we do need a set of proposals to deal with the haulage industry in the long term, to make sure that it's a viable, sustainable industry." PA Taoiseach Micheál Martin and Minister for Housing, James Browne with Micheal Flynn, founder and CEO of O’Flynn Group and John Coleman CEO of LDA as they officially announces plans for the delivery of 542 new homes in Dublin 12. Stephen Collins/Collins Photos Rory Tevlin EU welcomes Trump postponing strikes on Iranian power plants EU foreign policy chief Kaja Kallas has welcomed US President Donald Trump's announcement that there will be no attacks on Iranian energy infrastructure. Kallas, who was meeting with Nigeria's Foreign Minister Yusuf Maitama Tuggar in Abuja, said that attacks on infrastructure were causing chaos in the region and escalating this war even further. Trump said on Monday he had given orders to postpone any military strikes against Iranian power plants for five days. Reuters Reuters US President Donald Trump. Reuters/Kevin Lamarque Rory Tevlin British Prime Minister Keir Starmer says war in Iran could go on for 'some time' Speaking in the House of Commons, Mr Starmer said that “we have got to plan for the possibility that the Middle East conflict could go on for some time”. He reassures that the UK has not got any “meaningful concerns” about energy supply. He says the government was made aware of talks between the US and Iran. Reuters Reuters Denise Calnan Israeli military says it is still conducting strikes in Tehran The Israeli military said on Monday it is conducting strikes in Tehran, after U.S. President Donald Trump said the United States and Iran had held talks and that he would postpone any strikes on power plants and energy infrastructure. Reuters Denise Calnan LATEST: Dollar lurches lower after Trump halts strikes on Iran energy assets for five days - Dollar initially drops after Trump postponement - US stock futures rise more than 2pc following announcement - Market uncertainty remains despite positive initial reaction The dollar briefly plunged on Monday after U.S. President Donald Trump said he had asked the Department of Defense to postpone "any and all" military strikes against Iranian power plants and energy infrastructure for five days. Trump made the announcement on Truth Social just hours before a deadline he had set for Tehran to "fully open" the Strait of Hormuz, threatening to destroy Iranian power plants in a further escalation in a conflict now in its fourth week. The dollar dropped by 0.7pc against the euro EUR= and 0.6pc against the yen JPY= immediately after Trump posted early on Monday morning U.S. time, before recovering some lost ground to trade lower on the day against both. U.S. stock futures jumped over 2pc, while the STOXX 600 .STOXX erased daily losses to turn positive. It was last up 0.7pc, having been down over 2.2pc in early trade. "This is clearly a positive development. The two sides are in discussions, and this is the first material sign of de-escalation that we have seen since conflict broke out at the end of February," Pepperstone strategist Michael Brown said. "The war is not yet over. While positive, it is only strikes on energy infrastructure that have been ruled out at this stage, presumably meaning that kinetic action will continue elsewhere, at least for the time being," he said. The Iranian embassy in Kabul said Trump was backing down from attacking Iranian energy infrastructure "after Iran's firm warning." Crude oil prices LCOc1 fell as much as 14pc to a low of $96 a barrel, before clawing back to around $100 to show a loss of about 5.4pc on the day. Iran's FARS news agency cited a source saying there were neither direct nor indirect communications with the United States. Strategists said the initial market reaction could fade, given the extreme uncertainty that is prevailing right now. "This says 'strikes on energy infrastructure'. What about the rest - do the Iranians twiddle their thumbs for five days, and what about Israel? There are so many questions here that are unresolved," said IG strategist Chris Beauchamp. "Yes, markets have reacted positively. But it doesn't change the fact that the Straits are still closed," he said. Harry Robertson and Amanda Cooper, Reuters Denise Calnan BREAKING: Trump instructs Dept of War to postpone military strikes against energy infrastructure President Donald Trump said on Monday the U.S. has had good and productive conversations with Iran and he will order the military to postpone any military strikes against Iranian power plants and energy infrastructure for five days. Trump's move followed a threat by Iran to attack Israel's power plants and those supplying U.S. bases across the Gulf region if the U.S. targets Iran's power network. Conversations with Iran will continue throughout the week, Trump said in a social media post. "I HAVE INSTRUCTED THE DEPARTMENT OF WAR TO POSTPONE ANY AND ALL MILITARY STRIKES AGAINST IRANIAN POWER PLANTS AND ENERGY INFRASTRUCTURE FOR A FIVE DAY PERIOD, SUBJECT TO THE SUCCESS OF THE ONGOING MEETINGS AND DISCUSSIONS," he wrote. Reuters Denise Calnan Zoher Qazaz, 83, who was displaced from southern Lebanon, sits next to his car in a temporary encampment for displaced people, following an escalation between Hezbollah and Israel, amid the U.S.-Israeli conflict with Iran, in Beirut, Lebanon, March 23, 2026. REUTERS/Khalil Ashawi Denise Calnan British man jailed in Iran criticises UK government for abandonment in war zone Craig and Lindsay Foreman were previously sentenced to 10 years in prison on spying charges A British man who has been jailed alongside his wife for 10 years in Iran for spying has criticised the UK government for abandoning them in a war zone. Speaking from prison, Craig Foreman said he and his partner Lindsay feel “let down, alone and completely frustrated” with how their situation is being handled. The 53-year-olds were jailed following their arrest in January 2025 while travelling through Iran during an around-the-world trip by motorcycle. The couple, from East Sussex, and being held in Tehran’s Evin Prison after they were detained and sentenced on charges of espionage, which they deny. In a statement, Mr Foreman called on the government to “step out of the shadows and help us”. He said: “We are both currently serving 14 months into a 10-year prison sentence in Evin Prison, Tehran, for crimes that were never committed; spying for the UK and Israel. “We were charged based on falsified evidence that was fabricated to suit the maximum sentence. “Our government are fully aware of this information and know we are 100pc innocent. “We are proud to be British, but by now we feel let down, alone, and completely frustrated by the lack of public defence by the people in charge of the government.” He continued: “It’s very difficult to understand why our innocence has not been said publicly. We are not spies. The charges against us are simply not true. “I am asking you, Sir Keir Starmer, Yvette Cooper, Hamish Falconer and Hugo Shorter, you know we are innocent. “Go public with the information – you have to clearly step up, step out of the shadows and help us. Our lives are constantly at risk. “We are now in a prison in a war zone. We have gone from a challenging situation to a life-threatening situation. “You have chosen to give us zero information on what’s happening to us, what to do and where to go if the prison doors were to open. “There is a serious lack of commitment for our safety.” A family spokesperson previously said an explosion blew out the windows of the space where Mr Foreman is being held, sending ceiling plaster raining down on the inmates. The spokesperson also said Ms Foreman described to her son how women dived under metal bunk beds for cover. Mr Foreman’s statement added: “Lastly, we would like to say a massive thank you to our families and friends who have been… and are still the driving force and the backbone fighting for our release and our safe passage back home.” Ms Foreman’s son, Joe Bennett, said his mother is “in pieces” – calling their detention a “slow-motion destruction”. He said: “My mum is in pieces. She’s gone from always finding the positive to feeling completely lost. “The sense that she’s been abandoned by her own government is breaking her.” “They are not spies, and our government knows that. They do not believe these charges. “They need to say so publicly. Anything less only helps sustain a false narrative and prolongs the suffering of innocent people. “They are being held in appalling conditions; sleeping on metal bunks without mattresses, in constant pain. Craig is in agony with an untreated dental abscess. “They have nowhere to turn. This isn’t just detention, it’s slow-motion destruction.” The Foreign, Commonwealth and Development Office (FCDO) warns all British and British-Iranian nationals not to travel to Iran because of a “significant risk of arrest, questioning or detention”. The FCDO has been approached for comment. Josh Payne, Press Association Denise Calnan Iran threatens to mine entire Persian Gulf if land invasion takes place Tehran has also warned it will hit electrical plants and water infrastructure in Gulf Arab states if the US and Israel hit Iranian power facilities Iran’s defence council has threatened to deploy naval mines across the “entire Persian Gulf” if a land invasion happens. The council issued the statement as concern in Tehran grows about the potential arrival of US marines in the region. “Any attempt by the enemy to target Iran’s coasts or islands will, naturally and in accordance with established military practice, lead to the mining of all access routes … in the Persian Gulf and along the coasts,” the council said. The US has been trying to reopen the Strait of Hormuz, the narrow mouth of the Persian Gulf, to energy shipments. US marines could come ashore to seize either islands or territory in Iran to support that mission. Israel also has suggested a ground operation could take part in the war. Earlier, Iran warned it will strike electrical plants across the Middle East if US president Donald Trump follows through on his threat to bomb power stations in the Islamic Republic. The threat by Tehran puts at risk both electrical supplies and water in the Gulf Arab states, particularly as the desert nations commingle their power stations with desalination plants crucial for drinking water supplies. Following the threat, Iran’s semi-official Fars news agency published a list of such facilities, including the United Arab Emirates’ nuclear power plant. Over the weekend, Iran launched missiles targeting Dimona in Israel, near a facility key to its long-suspected atomic weapons programme. The Israeli facility was not damaged in the barrage. Mr Trump said the US would attack Iran’s power stations unless the country releases its stranglehold on the Strait of Hormuz. His self-declared 48-hour deadline expires just before midnight GMT on Tuesday, further raising the stakes of the ongoing war with Iran that has disrupted global energy supplies, sending natural gas and petrol prices soaring. Fatih Birol, the head of the Paris-based International Energy Agency, said: “No country will be immune to the effects of this crisis if it continues to go in this direction.” He told Australia’s National Press Club in Canberra on Monday that the crisis in the Middle East has had a worse impact on energy markets than the two oil shocks of the 1970s and the Russia-Ukraine war combined. On Monday, Israel launched new attacks on the Iranian capital, saying it had “begun a wide-scale wave of strikes” on infrastructure targets in Tehran. United States Central Command chief Admiral Brad Cooper claimed in an interview that Iran was launching missiles and drones from populated areas, and suggested those areas would be targeted. “You need to stay inside for right now,” Admiral Cooper told Iranian civilians on Monday in the interview with the Farsi-language satellite network Iran International. “There will be a clear signal at some point, as the president has indicated, for you to be able to come out.” Air defences in the United Arab Emirates intercepted a ballistic missile near the Al Dhafra Air Base in Abu Dhabi, and one person on the ground was injured when hit with shrapnel. Warning sirens sounded in Bahrain and Kuwait, while Saudi Arabia’s defence ministry said it had intercepted a missile targeting Riyadh, and had destroyed drones over the kingdom’s oil-rich Eastern Province. Oil prices remained stubbornly high in early trading, with the price of Brent crude, the international standard at around 112 dollars a barrel, up nearly 55pc since Israel and the US started the war on February 28 by attacking Iran. The war has also caused wild fluctuations in global stock markets as traders grow increasingly concerned about a world energy crisis and other issues. In addition to targeting Israel and American bases, Iran has been hitting the energy infrastructure of its Gulf Arab neighbours. It also has a tight grip on shipping through the Strait of Hormuz, which leads from the Persian Gulf toward the open ocean and through which a fifth of the world’s oil is shipped, along with other important commodities. Mr Trump said in a social media post that if Tehran did not open the strategic waterway to all ships, the United States would “obliterate” Iran’s power plants. Iran’s paramilitary Revolutionary Guard said on Monday that if the US did that, Iran would respond by hitting power plants in all areas that supply electricity to American bases, “as well as the economic, industrial and energy infrastructures in which Americans have shares”. The Fars news agency, which is close to the Revolutionary Guard, published a list of such sites in what appeared to be a veiled threat, including desalination plants as well as the UAE’s Barakah nuclear power plant, which has four reactors out in the western deserts of the country near its border with Saudi Arabia. The judiciary’s Mizan news agency also published the list. Iran has also said it will completely close the strait if Mr Trump follows through with the threat to attack Iranian power plants. Iranian parliament speaker Mohammad Bagher Qalibaf also said Iran would then consider vital infrastructure across the region – including energy and desalination facilities critical for drinking water in Gulf nations – as legitimate targets. In his first one-on-one interview since the war started, Admiral Cooper said the campaign against Iran is “ahead or on plan” and that the US and Israel were targeting infrastructure and manufacturing facilities to destroy Iran’s capabilities to rebuild its military. “It’s not just about the threat today,” he said. “We’re eliminating the threat of the future, both in terms of the drones, the missiles as well as the navy.” He suggested Iran could bring a quick end to the war if it stopped firing back, though did not say whether that would prompt Israel and the US to relent before all infrastructure targets have been destroyed. “They could stop this war right now, absolutely, if they chose to do so,” he said of Iran. “They need to stop putting the wonderful Iranian people at risk by firing missiles and drones from inside populated areas. They need to stop immediately attacking civilians throughout the Middle East region.” Iran’s death toll in the war has surpassed 1,500, its health ministry has said. In Israel, 15 people have been killed by Iranian strikes. More than a dozen civilians in the occupied West Bank and Gulf Arab states have been killed in strikes. In Lebanon, authorities say Israeli strikes targeting Iran-linked militia Hezbollah have killed more than 1,000 people and displaced more than one million. Meanwhile, Hezbollah has fired hundreds of rockets into Israel. Jon Gambrell and David Rising, Associated Press Ground crew prepare a USAF B-1 bomber before dawn at RAF Fairford airbase, used by United States Air Force (USAF) personnel, amid the U.S.–Israeli conflict with Iran, in Fairford, Gloucestershire, Britain, March 23, 2026. REUTERS/Toby Shepheard Denise Calnan Explainer: Price hikes, outlook cuts - what airlines are doing as fuel costs surge A surge in jet fuel prices, driven by the U.S.-Israeli war on Iran, has upended the global aviation industry, prompting airlines to raise fares and revise financial outlooks. Jet fuel prices have soared from $85-$90 per barrel to $150-$200 per barrel in recent days for an industry where fuel accounts for up to a quarter of operating expenses. Below is a list of how airlines are responding, in alphabetical order: AEGEAN AIRLINES The Greek airline said on March 12 that it expected suspended Middle East flights and a spike in fuel prices to have a "notable impact" on its first-quarter results. AIR FRANCE-KLM The French airline said on March 12 it planned to increase long-haul ticket prices to address surging jet fuel costs. It said cabin fares would rise by 50 euros ($57) per round trip. AIR NEW ZEALAND The airline was one of the first to announce broad increases to ticket prices on March 10. It also suspended its fiscal 2026 earnings forecast due to unprecedented volatility in global jet fuel markets. The price hikes for one-way economy fares are set at NZ$10 ($6) on domestic routes, NZ$20 on short-haul international services and NZ$90 on long-haul flights, with further price, network and schedule changes possible if fuel costs remain elevated. AKASA AIR India's Akasa Air said on March 14 it was introducing a fuel surcharge ranging between 199-1,300 Indian rupees ($2-$14) on domestic and international flights. AMERICAN AIRLINES The U.S. carrier said on March 17 it expected a $400 million increase in first-quarter expenses as jet fuel prices surge. CATHAY PACIFIC The Hong Kong airline said it would raise fuel surcharges on all routes from March 18, citing a doubling of jet fuel prices since the start of the month. Earlier in March, the carrier said it reviewed fuel surcharges monthly and had kept them steady last month at $72.90 for flights between Hong Kong and Europe or North America. CEBU AIR The Philippines-based airline said on March 13 the sharp rise in fuel prices was a key concern and it would continue to review its pricing and network strategies to mitigate the negative impact. FRONTIER AIRLINES The American airline is reviewing its full-year forecast as jet fuel prices have increased significantly since it issued the outlook, it said on March 17. HONG KONG AIRLINES The airline said it would raise fuel surcharges by up to 35.2% from March 12, with the sharpest increase on flights between Hong Kong and the Maldives, Bangladesh and Nepal, where charges would rise to HK$384 ($49) from HK$284. IAG British Airways-owner IAG said on March 10 it did not plan to hike ticket prices immediately, as it had hedged much of its fuel for the short- to medium-term. INDIGO India's biggest airline said it would introduce fuel charges on domestic and international flights from March 14, including a charge of 900 rupees for flights to the Middle East and a charge of 2,300 rupees for flights to Europe. The company is also lobbying the Indian government to cut fuel taxes, sources told Reuters. PAKISTAN INTERNATIONAL AIRLINES The Pakistani carrier said on March 12 it would raise respective domestic and international flight fares by $20 and by up to $100, citing higher fuel surcharges. QANTAS AIRWAYS The Australian airline said on March 10 it would hike fares on its international routes and was considering adding capacity on its existing Europe routes in the coming months. SAS The Scandinavian airline said on March 17 that it would cancel 1,000 flights in April because of high oil and jet fuel prices. For March, the airline said it had cancelled a "couple hundred" flights. SAS, which had already increased flight prices, said that even if it tried to absorb the rising fuel costs, the price surge would still be a strike to the aviation industry. THAI AIRWAYS The Thailand-based carrier said on March 11 it would raise fares by 10-15% to address rising fuel costs. UNITED AIRLINES The Chicago-based airline is cutting unprofitable flights over the next two quarters as it prepares for oil prices to remain above $100 until the end of 2027, CEO Scott Kirby said on March 20. At those levels, its annual fuel bill would increase more than twice the profit it earned in its best year ever, he added. VIETNAM AIRLINES The carrier said it had requested government assistance to remove an environmental tax on jet fuel, as operating costs for Vietnamese airlines have surged by around 70% due to fuel price increases, according to local officials. VIRGIN AUSTRALIA Virgin Australia said it was adjusting fares to reflect rising cost pressures across the aviation sector, which it said were being significantly exacerbated by the situation in the Middle East. Mireia Merino, Marleen Kaesebier, Reuters Smoke rises after an Israeli strike, following an escalation between Hezbollah and Israel amid the U.S.-Israeli conflict with Iran, as seen from Marjayoun, Lebanon, March 22, 2026. REUTERS/Karamallah Daher Denise Calnan Children rest in a tent, inside the Camille Chamoun Stadium which is used as temporary encampment for displaced people, following an escalation between Hezbollah and Israel, amid the U.S.-Israeli conflict with Iran, in Beirut, Lebanon, March 22, 2026. REUTERS/Yara Nardi Denise Calnan Keir Starmer to chair Cobra meeting after Donald Trump call on Iran crisis Britain's prime minister Keir Starmer is set to convene an emergency Cobra meeting on Monday after a call with Donald Trump to discuss reopening the Strait of Hormuz. In a conversation on Sunday night, the prime minister and the US president agreed reopening the strait was “essential” to stabilise a global energy market that had seen oil prices rocket since Mr Trump began his joint campaign with Israel against Iran. The 20-minute call, described by sources as “constructive”, followed a week in which Mr Trump had heavily criticised Mr Starmer's response to the crisis amid the president’s demand for other nations to send ships to open the strait. Other nations have so far resisted his demand, with the UK thought to be unlikely to send vessels because of the high level of risk in the strait and an unwillingness to be drawn into the wider war. But Tehran’s unsuccessful attempt to strike the UK-US base on Diego Garcia with ballistic missiles has raised concerns that much of Europe could be within range of Iranian weapons. While the strait remains effectively closed to most shipping, the impact on the global energy market and the global economy is set to continue. Facing the threat of higher inflation and concerns about disruption to fuel supplies, Mr Starmer will convene his top ministers at a Cobra meeting on Monday afternoon. Chancellor Rachel Reeves, British Foreign Secretary Yvette Cooper and British Energy Secretary Ed Miliband are expected to join the meeting, as well as the governor of the Bank of England, Andrew Bailey. The meeting is expected to focus on the economic impact of the crisis, energy security and the resilience of industry and supply chains alongside the international response. On Sunday, the chief executive of Centrica, which owns British Gas, said global oil supplies are already down 20pc because of the conflict and warned price rises were “inescapable”. But the UK government is keen to play down the prospect of fuel rationing and discourage people from panic-buying petrol. In a conversation on Sunday night, the prime minister and the US president agreed reopening the strait was “essential” to stabilise a global energy market that had seen oil prices rocket since Mr Trump began his joint campaign with Israel against Iran. The 20-minute call, described by sources as “constructive”, followed a week in which Mr Trump had heavily criticised Mr Starmer's response to the crisis amid the president’s demand for other nations to send ships to open the strait. Other nations have so far resisted his demand, with the UK thought to be unlikely to send vessels because of the high level of risk in the strait and an unwillingness to be drawn into the wider war. But Tehran’s unsuccessful attempt to strike the UK-US base on Diego Garcia with ballistic missiles has raised concerns that much of Europe could be within range of Iranian weapons. While the strait remains effectively closed to most shipping, the impact on the global energy market and the global economy is set to continue. Facing the threat of higher inflation and concerns about disruption to fuel supplies, Mr Starmer will convene his top ministers at a Cobra meeting on Monday afternoon. Chancellor Rachel Reeves, British Foreign Secretary Yvette Cooper and British Energy Secretary Ed Miliband are expected to join the meeting, as well as the governor of the Bank of England, Andrew Bailey. The meeting is expected to focus on the economic impact of the crisis, energy security and the resilience of industry and supply chains alongside the international response. On Sunday, the chief executive of Centrica, which owns British Gas, said global oil supplies are already down 20pc because of the conflict and warned price rises were “inescapable”. But the UK government is keen to play down the prospect of fuel rationing and discourage people from panic-buying petrol. British Communities Secretary Steve Reed told broadcasters on Sunday there was “no need” to ration fuel and the public should continue to fill up their cars “just like they always would”. Christopher McKeon and George Lithgow, Press Association Denise Calnan WATCH: Iranian missiles seen over Jerusalem amid retaliation against Israel Denise Calnan Of course Trump would have a countdown... A look at the day ahead in European and global markets from Wayne Cole, Reuters So, now we have a Middle East war, an Iran with long-range ballistic missiles, and a clock ticking down to a scary deadline - how very reality TV. No doubt some news channel will soon have a red timer ominously counting the seconds in the corner of their screen. Late Saturday, President Trump took to social media to announce Iran had 48 hours to open the Strait of Hormuz, or the U.S. would "obliterate" Iran's power plants. Trump set a Monday deadline of around 7:45 p.m. EDT (2345 GMT), thus ruining Tuesday morning for Asia. Apparently, the first target would be the largest, which happens to be a nuclear plant. That would usually be prohibited under international law and potentially a major environmental disaster. Iran responded by threatening to close the Strait of Hormuz "completely" and to target energy and water infrastructure in neighbouring countries. Strikes on desalination plants would be particularly devastating. Brent swung higher, then lower and is now up 0.5pc in very choppy trade. That could be because the U.S. has allowed the sale of more Iranian and Russian oil already on tankers, meeting immediate demand. However, the growing risk of longer-term shortages has lifted oil futures down the curve. September Brent, for instance, is up $1 at $92.90 suggesting high prices are here to stay. The story is similar for LNG, where reports suggest that there are seven tankers at sea with cargoes, but once those are delivered there will be no new supply from Qatar. There are already global shortages of jet fuel, bunker fuel for ships and fertiliser, promising to make travelling, shopping and eating all more expensive. International Energy Agency boss Fatih Birol is in Australia right now, warning the crisis is "very severe" and worse than the two oil shocks of the 1970s put together. International Energy Agency boss Fatih Birol is in Australia right now, warning the crisis is "very severe" and worse than the two oil shocks of the 1970s put together. The inflationary pulse is hammering bonds, with 10-year Treasury yields touching eight-month highs of 4.4150pc, in turn adding to borrowing costs for developed nations already struggling with budget deficits and debt. Higher yields are also stretching equity valuations, while rising petrol and diesel prices will act as a brake on consumer demand and corporate profits. Investors have also aggressively repriced for central bank tightening, drastically so in some cases. A Fed rate cut is gone for this year, while the ECB is seen hiking 75 basis points and the BoE 85 basis points. This has not gone down well in equity land, where the Nikkei has shed more than 3pc and South Korea almost 6pc. European stock futures are off 1.1pc to 1.3pc, with S&P 500 futures down 0.4pc or so. Denise Calnan Senan Molony: Why Simon Harris must ‘go big or go home’ when it comes to Government’s fuel package As Coalition meets to agree on the measures, Fine Gael leader will be put to the test, Senan Molony writes Read his full piece here: Denise Calnan Iran threatens to hit Gulf neighbours’ energy systems if Trump follows through on vow to bomb Islamic Republic’s grid Prospect of tit-for-tat strikes on civilian infrastructure could entrench three-week-old crisis and further rattle markets Iran has warned it will strike the energy and water systems of its Gulf neighbours in retaliation if US President Donald Trump follows through with a threat to hit Iran’s electricity grid in 48 hours. The prospect of tit-for-tat strikes on civilian infrastructure could deepen the regional crisis in the three-week-old war and further rattle global markets when they reopen this morning. Air raid sirens sounded across Israel from the early hours of yesterday, warning of incoming missiles from Iran, after scores of people were hurt overnight in two separate attacks in the southern Israeli towns of Arad and Dimona. The prospect of tit-for-tat strikes on civilian infrastructure could deepen the regional crisis in the three-week-old war and further rattle global markets when they reopen this morning. Air raid sirens sounded across Israel from the early hours of yesterday, warning of incoming missiles from Iran, after scores of people were hurt overnight in two separate attacks in the southern Israeli towns of Arad and Dimona. The Israeli military said hours later it was striking Tehran in response. On Saturday night Irish time, Mr Trump threatened to “obliterate” Iran’s power plants if Tehran did not fully reopen the Strait of Hormuz within 48 hours, barely a day after he talked about “winding down” the war. He made the new threat as US Marines and heavy landing craft were headed to the region. But while attacks on electricity could hurt Iran, they would be potentially catastrophic for its Gulf neighbours, which consume around five times as much power per capita. Electricity makes their gleaming desert cities habitable, and most of them produce nearly all of their drinking water by purifying it from the sea. Iran’s Parliament Speaker Mohammad Baqer Qalibaf wrote on X that critical infrastructure and energy facilities in the Middle East could be “irreversibly destroyed” should Iranian power plants be attacked. Iran’s powerful Revolutionary Guards said it would also mean the continued closure of the Hormuz shipping lane where a fifth of global oil and LNG normally transits along Iran’s southern coast. “The Strait of Hormuz will be completely closed and will not be opened until our destroyed power plants are rebuilt,” the Guards said in a statement. More than 2,000 people have been killed during the war the US and Israel launched on February 28, which has upended markets, spiked fuel costs, fuelled global inflation fears and convulsed the post-war western alliance. “President Trump’s threat has now placed a 48-hour ticking time bomb of elevated uncertainty over markets,” said IG market analyst Tony Sycamore, who expects stock markets to fall when they reopen today. Oil prices jumped on Friday, ending the day at their highest in nearly four years. Markets already under severe strain from blockaded shipping were further rattled last week when Israel attacked a major gas field in Iran, and Tehran responded with strikes on neighbours Saudi Arabia, Qatar and Kuwait, raising the prospect of damage hindering energy output even if tankers resume sailing. Iranian attacks have effectively closed the Strait of Hormuz, causing the worst oil crisis since the 1970s. Its near-closure sent European gas prices surging as much as 35pc last week. “If Iran doesn’t FULLY OPEN, WITHOUT THREAT, the Strait of Hormuz, within 48 HOURS from this exact point in time, the United States of America will hit and obliterate their various POWER PLANTS, STARTING WITH THE BIGGEST ONE FIRST!” Mr Trump posted on social media around 7.45pm Washington time (11.45pm Irish time) on Saturday. Iranian media quoted the country’s representative to the International Maritime Organisation as saying the strait remains open to all shipping except vessels linked to “Iran’s enemies”. Ali Mousavi said passage through the waterway was possible by coordinating security and safety arrangements with Tehran. Ship-tracking data shows some vessels, such as Indian-flagged ships and a Pakistani oil tanker, have negotiated safe passage through the strait. But the vast majority of ships have remained holed up inside. Iran’s Khatam al-Anbiya military command headquarters said that if the US hit Iran’s fuel and energy infrastructure, Iran would attack all US energy, information technology and desalination infrastructure in the region. Striking major Iranian power plants could trigger blackouts, crippling everything from pumps and refineries to export terminals and military command centres. The United States and Israel say they have seriously degraded Iran’s ability to project force beyond its borders with their three weeks of intensive air strikes. But Tehran fired its first known long-range ballistic missiles with a range of 4,000km on Friday towards the US-British Chagos Islands base in the Indian Ocean, expanding the risk of attacks beyond the Middle East. An Iranian strike also landed near Israel’s secretive nuclear reactor about 13km southeast of the southern city of Dimona. The war has been taking place alongside a confrontation on a separate front between Israel and Lebanon’s Hezbollah, backed by Iran, with Israel saying yesterday its troops had raided a number of the armed group’s sites in southern Lebanon. Hezbollah said it had attacked several border areas in northern Israel. Israeli emergency services said one person was killed in a kibbutz near the border. Israel later said it was checking whether the death was caused by Israeli fire. Hezbollah has fired hundreds of rockets at Israel since it entered the regional war on March 2, prompting an Israeli offensive that has killed more than 1,000 people in Lebanon. Israel said it had instructed the military to accelerate the demolition of Lebanese homes in “frontline villages” to end threats to Israelis, and to destroy all bridges over Lebanon’s Litani River which it said were used for “terrorist activity”. During his regular Sunday prayers at the Vatican yesterday, Pope Leo appealed for an end to the conflict. “The death and suffering caused by this war are a scandal to the whole human family,” he said. A Reuters/Ipsos poll conducted last week found 59pc of Americans disapprove of US strikes against Iran, while 37pc approved. The war has become a major political liability for Trump ahead of November elections for Congress. Maayan Lubell and Alexander Cornwell, Reuters