
(3 Minutes Read)
With the possibility of higher oil prices, sub-Saharan Africa could face rising inflation and fuel shortages. This would put additional strain on economies already struggling with the ripple effects of global uncertainties, including supply chain disruptions and inflationary pressures in key sectors.
Experts warn that the ripple effects of the Iran-Israel war could be deeply felt across the continent. Analysts predict potential disruptions to trade, soaring market instability, and economic pressures that are unlikely to ease anytime soon.
One of the most immediate threats is the potential rise in energy prices. According to Mustafa Ali, an international relations expert, the prices for energy goods like oil and petroleum are going to rise, and that is going to affect many African countries that primarily rely on fossil fuels to run their industries, transport systems, and factories.
Goldman Sachs has already forecast a USD10 increase in benchmark crude prices. The closure of the Strait of Hormuz, a critical oil transit chokepoint controlled by Iran, could drive prices even higher, further destabilizing economies that are already vulnerable.
With the possibility of higher oil prices, sub-Saharan Africa could face rising inflation and fuel shortages. This would put additional strain on economies already struggling with the ripple effects of global uncertainties, including supply chain disruptions and inflationary pressures in key sectors.
Read Also:
Economic analyst Cavince Adhere emphasises the need for Africa to be proactive in understanding the dynamics of the conflict and its potential domestic impacts.