A (12:14)
Yeah, thanks, Tom. We are obliged to return to the Middle East. That decision by the Iranians to close the Strait of Hormuz, one of the few strategic options available to them, really will have an impact on global oil prices. That was the route used by Russia to transport some of the discounted Russian oil to India and China. So it'll have a negative consequence on that. And yet the broader implications for global oil prices of the closing of that strait and access to other routes to New Delhi and Beijing may actually lead to a boost temporarily for Russia. In terms of the revenues it accrues from that, we just don't know. Now, there are some uncomfortable questions being put the Kremlin's way today by the Gulf states that have been attacked by Iran. Drone debris marked Garan 2 in Russian has reportedly been found at a port in Dubai, just underscoring Russia's cooperation in providing Tehran with drones and missiles. And on that subject, President Zelenskyy has once again sought to use Kyiv's expertise in aerial defence as leverage. He's floated swapping Patriot missiles Of course, we've spoken about them so many times. US made interceptor missiles, which Kyiv desperately needs, let's be honest, for Ukrainian interceptor drones, which he argues are of more value in this context in the Middle east, in those countries that are currently under attack. He said it is an equal exchange. Now, the US and other countries have stockpiles of Patriot interceptor missiles, but frankly, it feels unlikely, given all of this, that they're going to be willing to part with them with or without valid replacements. Indeed, this will lead to many countries prioritising their own air defences rather than Ukraine's, especially in Europe, which was, of course, an objective of Russia with those drone incursions that we've spoken about several months ago. So this is again, another unintended consequence of what's happened in recent days, is that it has in some ways assisted a core Moscow objective. Now, that is why a Ukrainian expert told the Telegraph, it is in Ukraine's interest that this operation in Iran does not drag on and ends with the punishment of the Iranian dictatorship. Now, President Zelenskyy also said this yesterday, and I think it is worth quoting this in full. It's quite interesting. We're sensing Russian weakness in certain areas. It's a new feeling. This doesn't mean we should let our guard down. We can't relax, we can't think the enemy's given up, can't think their numbers have dropped. But what's important is that, personnel wise, they feel a bit weaker, no time for training, so they have a major personnel problem. Of course, all our personnel challenges are known. We have no secrets. But this feeling, it's not a bad one. I think the monthly casualty numbers are starting to have an effect. Again, I don't want to sound like some pseudo optimist, but I'm just saying that in my view, the enemy personnel losses are starting to add up. So we'll see how things go moving forward. Now, if that is true from President Zelensky, and there is evidence to suggest that Moscow is not able to replace the number of men it is losing to the front, a core subject we talked about in last week's podcast, then that is a very significant development indeed. But returning Dom to the Middle east again, briefly, it is worth reflecting on the difference between the White House's approach to talks with Iran than talks with Russia. I think. Just listen to this quote from Steve Wyckoff on Fox. Yesterday. Trump sent us to see if Iran was serious about a deal ending its missile program, support for proxies, threats to Gulf shipping and any path to a bomb. By the second meeting, it was clear that was impossible. The third confirmed it. So, in other words, it took Wyckoff two meetings to conclude that Iran wasn't serious about a deal. He's been now in over a year of meetings with the Russians and there's been no suggested movement in terms of believing that the Kremlin may not, after all, be serious about a deal. So I think we can understand why. One of the core messages of German Chancellor Friedrich Merz in the Oval Office yesterday when he was meeting with Trump was precisely that. Russia is playing for time here, he said, and in doing so is acting against the will of the American president. In today's talks, I called for increasing the pressure on Moscow. We are also not prepared to accept an agreement that is negotiated over our heads and I think we can assume that the hour is European there now. During his conversation with Trump, Mertz also stressed Ukraine should not have to make additional territorial concessions and reiterated the need to maintain support for Kyiv. So the same old signalling from the Europeans, but no signs it's had any fundamental impact on how Washington has approached the issue. Now, on the economic front, just a few interesting, if knotty, updates. Ukraine received its first payment of 1.5 billion euros under the new International Monetary Fund scheme, as Kyiv still waits for progress from the EU to unlocking the 90 billion euro loan that was agreed at Christmas time. Something we spoke about at length with Joe back then. Now, the reason for that delay, of course, as we all know, are the Hungarians with the Prime Minister, Viktor Orban, saying that Budapest will block the loan until Russian oil starts flowing back through the Druzba pipeline, which has been offline since late January, I think, after Ukraine said it was damaged by Russia attacks and which remains a key source of energy for Hungary and for Slovakia. Now facing the very real chance, Viktor Orban, that he could lose the election on April 12. Orban has made the war in Ukraine and his stance on it a pillar of his re election campaign. Almost any excuse he can find to talk about the war and how it could possibly escalate were it not for him trying to dial things back. He has not escaped. He has been pushing forward on this as strong as conceivably possible. Yesterday he spoke to Putin where he discussed Hungarians serving in the Ukrainian army who'd ended up in Russian captivity. All designed to draw attention to the way that the war is impacting Hungarians, with Kyiv to blame. And our friends at the Financial Times report that the European Commission President, Ursula von der Leyen and Antonio Costa President of the European Council specifically asked Ukraine's leadership during their visit to Kyiv on the fourth anniversary last week for access to the Druzhba pipeline in order to assess the damage independently. They were denied that. So evidence that this is becoming a bigger issue. Quite helpful that for Budapest, I would wager. Why must we repair the pipeline? A Ukrainian source told the ft, in times of war and without a ceasefire, which gives oil from Russia to Russia's friends. But one senior EU official said to the Financial Times that Kyiv had scored an own goal by giving Hungary an excuse to block the loan. Now, the next meeting of European ambassadors is today, but we don't know whether that's going to see any movement on this. Personally, I don't think that we should be seeing what Orban has done here as being something that's the Ukrainians fault at all. I think he would have found another excuse to block this prior to the election. The big question is though, whether he's going to try and block this all the way to April 12 and his election campaign. If he does, that will have big impacts on Ukraine's ability to wage this war. The assumption was that Ukraine would run out of money by halfway through the year. So that might be where the IMF loan comes in, that they're basically building up a stock gap, a bridging loan in case the €90 billion loan gets blocked. Now, I hope you're staying with me at the back here. I know that this is all a bit confusing, but this does really matter and I'm sure that Joe will have some thoughts on this as well. And just finally, just to wrap up this economic issue at the moment, Russia's Central bank has also filed a legal challenge against the the EU's decision to indefinitely freeze part of its gold and foreign exchange reserves. They've brought the case towards the European Court of Justice. It's targeting the regulation that was adopted by the Council of the European Union back in December. I think that extended the asset freeze indefinitely. So this is what you call classic case of lawfare paying lip service to international law while really using it as a weapon of intimidation and equivocation. And I say, I'm sure that's something that Joe has seen countless times over his time covering Brussels. So I know a lot to process there and it is all, as I said earlier on, rather knotty, but it really matters.