The United States has requested assistance from Ukraine in defending against Iranian-designed Shahed drones, Ukrainian President Volodymyr Zelensky revealed Wednesday, as Donald Trump’s military operation against Iran continues to escalate and disrupt global energy markets.
Zelensky, in his nightly address, stated that the US, along with other allied countries, is seeking Kyiv’s “help in defending against (Iranian-designed) Shahed drones, with expertise and real operational experience.” He added that there had been “requests from the American side.”
The request comes as the conflict in the Middle East threatens to divert crucial military aid from Ukraine, potentially leaving it vulnerable to Russian attacks. Zelensky warned earlier this week that the focus on the Iran conflict could lead to a decrease in air defense support for Ukraine, as the US and its allies deploy resources to counter Iranian drones and missiles. “Our estimation, of course, is that air defence [for Ukraine] could decrease,” he said in an interview with The Independent.
European officials share Zelensky’s concerns, fearing that Trump’s operation against Iran will overshadow the war in Ukraine and diminish US interest in resolving the conflict with Russia, now entering its fifth year, according to POLITICO. The practical impact could be a shortage of American-made weapons for Ukraine, as the US prioritizes its own needs in the Middle East.
The potential for a prolonged conflict in the Middle East has already sent ripples through energy markets. Oil prices rose to $90 a barrel on Friday after the critical Strait of Hormuz was effectively closed and reports emerged of production cuts in Kuwait. This surge in oil prices is expected to exacerbate inflationary pressures and disproportionately impact lower-income households, economists warn.
Research from the University of Massachusetts Amherst indicates that energy, along with food and agriculture, has “a disproportionate capacity to increase inequality when their prices rise.” A recent study showed that following the 2022 oil price surge in the US, 50% of the windfall benefit went to the wealthiest 1% of individuals, even as the bottom 50% received only 1%.
In the UK, the RAC reported that the increase in oil prices has already added 3p to the cost of a litre of unleaded. A sustained rise in gas prices could lead to a significant increase in household energy bills when the next quarterly price cap takes effect in July, potentially complicating Labour’s plans to reduce household costs.
The situation presents a challenge for central bankers, who may be forced to delay further interest rate cuts despite the prospect of a fresh surge in economy-wide inflation. Alan Taylor, a member of the Bank of England’s monetary policy committee, noted that “large energy shocks move faster than inflation-targeting central banks can respond.”
Experts suggest that governments may need to consider a broader range of policy interventions, including securing supplies of key commodities, protecting vulnerable populations, and cracking down on price gouging. The long-term solution, according to Energy Secretary Ed Miliband, lies in transitioning to clean, homegrown power sources.
As Chancellor Rachel Reeves prepares to deliver the annual Mais lecture on Labour’s economic plans, the UK is bracing for another economic shock, with the potential for further disruption dependent on the duration and intensity of hostilities in the Middle East.
