Conflict in the Gulf Overshadows Policy Initiatives Between the US and UK
The immediate impact on energy costs is being felt by businesses and consumers in both countries and the relationship between the leaders looks bumpy.”
For commentators, political advisors, policy wonks and other interested parties, it is hard to see past the crisis in the middle east at the moment, as this new war is well into its third week. BAB members will have their own views about the decision made by the US and Israeli governments, (and this is outside of the policy remit of BAB), but the impact and implications if the conflict continues much longer, or widens into a regional war, or worse, are profound for both the US and the UK and the businesses that operate in and between them.
Again, we make no comment on the level of support offered by the UK, but the US President has made no secret about how he feels, and there is genuine bemusement about the limited military resources that the UK has available to contribute if it wanted to. In this context, we are working on a paper looking at the opportunities for US UK Defense capability collaboration which we will publish later in the spring.
The immediate impact on energy costs will be felt by businesses and consumers in both countries where inflation and affordability are right at the top of voters’ concerns (and perhaps provide the motivation for a speedy resolution). In the UK, especially, this crisis puts UK energy policy directly under the spotlight. BAB has argued consistently for a sensible and pragmatic approach to energy. Yes, by all means encourage a transition to renewables, but to do this in a way which makes the UK one of the most expensive energy markets in the world, by replacing gas and oil from the North Sea with product shipped from Qatar, and to tax North Sea producers to the point of unfeasibility, feels like an act of self-harm that should be reviewed and reversed. Read more.