Iran nuclear sanctions - Peace is a price worth paying

In agreeing to impose new economic sanctions on Iran over its nuclear programme, including an embargo on buying its oil or trading in its gold, the EU has effectively sent out a message based on the principle that Ireland’s membership of the elite — if somewhat endangered — Brussels club comes at a price.

No doubt the Iranian economy will suffer once the measures are in place but it is also undeniable that an embargo will have knock-on repercussions for EU states.

Inevitably, Irish consumers will be hit where it hurts most — their pockets. Yet, they have more or less been advised to grin and bear it by Eamon Gilmore, the tánaiste, who said that “while this is clearly an issue for consumers, the expected price increase has to be weighed against the seriousness of the problem of Iran’s nuclear programme”.

With so many people reeling from a succession of hammer blows under a series of austerity programmes, surely it is time the Government lowered its take at the pumps. Instead, homeowners and drivers have received an ominous warning from the foreign affairs minister to brace themselves for looming price hikes on top of measures already biting.

If we can be sure of anything in this volatile scenario, it is that prices will increase. This raises further questions about the Government’s chances of carrying a possible referendum on the EU fiscal plan.

On his way into the decisive meeting of EU foreign ministers, Mr Gilmore made it patently clear that the price of petrol, diesel and home heating oil were likely to go up as a result of restrictions on exports of Iranian oil. Given the significant role of oil imports in the generation of power by the ESB, it also seems likely that the cost of electricity both for domestic and industrial users could go higher. And with the price of natural gas linked to that of oil, its price could also continue to rise, with all that implies.

Such developments would have serious repercussions for homeowners, especially those out of work, struggling to pay mortgages and put bread on the table. Moreover, if manufacturers are forced to carry higher prices for power and fuel, they would lose competitiveness in cutthroat markets.

Mr Gilmore makes clear that the embargo will have an impact on prices for consumers, though he could not quantify by how much petrol, diesel and home heating oil would increase. However, by urging people to weigh these against the serious problem of Iran’s nuclear programme, he delivers a stark reminder of the threat posed by the rogue state.

Considering the extreme nature of an Iranian regime hell-bent on developing its nuclear programme as a matter of national pride and as a weapon, the EU policy of economic pressure is far preferable to launching a military strike as advocated by hardliners in Israel and elsewhere and with warships massing in the Gulf.

Having benefited handsomely from membership of the EU club since the 1960s, there is no doubt Ireland should support the embargo against Iran. However, the Government should lessen the impact on consumers by reducing its revenue take. In the context of nuclear peace, it would be a dual price worth paying.