Comment: Little light at the end of the tunnel as Middle East crisis rumbles on

America sneezes, and the world catches a cold, so goes the age-old saying about the repercussions that events across the Atlantic can have around the globe.

And, as we report today, when America drops bombs on its enemies, the consequences for the West Midlands can be severe indeed.

For the two businesses we feature in today’s newspaper, the effects have been dramatic. Falling margins have meant that Darren Pugh, of Hammonds Catering, has been unable to take on new workers, despite healthy order books, while cafe and farm shop owner Meg Jagger has been left with little choice but to increase prices.

The real worry is that this is likely to be just the start of it. The continued economic hangover from the coronavirus lockdowns have demonstrated how the effects of major economic shocks usually take some time to manifest themselves. The last thing Britain needs, in the wake of this and the continued effects of the war in Ukraine, is more disruption to our economy.

As our two businesses demonstrate, there are few businesses which are not hard hit by a rise in the cost of fuel. And in this age of complex supply chains and interdependence, rising costs to one company will inevitably be passed on to others, creating a domino effect that is hard to arrest. Job losses in one sector, means less disposable income to support another, which will in turn hit suppliers, creating a vicious downward circle.

Britain’s position is particularly vulnerable, due to a structural imbalance in our economy. While restarting North Sea oil and gas exploration is unlikely to be a silver bullet that will either meet our short-term energy needs nor cut our bills, it is hard to justify the logic in blocking it at a time when both fuels are in short supply. Similarly, successive governments must share the blame for failing to invest in our energy infrastructure, and nuclear energy in particular.

President Trump has promised to reopen the Strait of Hormuz, but as with the bombing campaign that started this conflict, his efforts appear half-baked and half-hearted, with lots of hot air and empty threats but little sign of a clear strategy. Nevertheless, it is in all our interests that he succeeds in opening the waterway.

Even if the Strait were to reopen tomorrow, considerable damage has already been done, a price that we will all be paying for years to come. Which makes it all the more important that a resolution is found now.

The US president has been dealt a painful reminder that being in charge does not always mean you get your own way. Let’s hope he has learned from that experience - but don’t hold your breath.