The US-Israeli war on Iran had far-reaching economic repercussions that affected consumers around the world. Expectations indicate that these effects will continue for months to come due to the damage to the facilities and high shipping costs, in addition to the uncertainty surrounding energy supplies through the Strait of Hormuz.

The Qatari Energy Minister, Saad Al-Kaabi, warned that the continuation of the conflict could lead to the “collapse of the world’s economies” and push oil prices towards $150 per barrel, after they jumped by 24% last week to reach $93.

The 5 most prominent repercussions affecting consumers globally:

  • Fuel prices rise: Gasoline and diesel prices in the United States and Europe have seen increases of between 11% and 15%, reaching their highest levels since 2023.
  • Gas crisis: Gas prices in Europe rose by 70%, amid warnings that stocks in Britain and the European Union would fall to dangerous levels.
  • Transportation costs and inflation: The cost of chartering giant oil tankers has doubled, leading to higher global shipping rates and exacerbating inflation rates.
  • Fertilizer and food prices: The halt in urea exports from Qatar has caused its futures to rise by 21%, threatening to increase the cost of food production.
  • Fading hopes of a rate cut: Expectations of central banks (US, British and European) to cut interest rates have declined, keeping the costs of loans and living high.

Effects of the war on Arab countries:

Economic experts explained that the extent of the impact varies from one country to another depending on its economic structure, as countries that rely heavily on imports are the most vulnerable to damage.

In Egypt, the war caused the exit of $4 billion in “hot money,” which led to a rise in the dollar exchange rate and an increase in the prices of cars and gold, in addition to a decline in the volume of commercial transactions. There are also concerns about potential impacts on Suez Canal revenues and tourism, as well as the repercussions of the crisis on remittances from workers in the Gulf countries, which are among the most affected regions so far.