From Pakistan to Egypt, Iran war drives up prices in Global South

Economy | Business and Economy As Iran war rocks global economy, Global South bears brunt of fallout Developing economies in Asia, Africa and the Middle East are most exposed to surging energy costs. Listen (7 mins) Save Click here to share on social media Share Add Al Jazeera on Google By John Power Published On 25 Mar 2026 25 Mar 2026 As the United States-Israeli war with Iran sends tremors through the global economy, the poorest members of the Global South are the most exposed to the fallout. In Asia, Africa and the Middle East, developing economies are bearing the brunt of surging energy costs prompted by the closure of the Strait of Hormuz and attacks on oil and gas facilities across the Gulf. Recommended Stories list of 4 items list 1 of 4 UN expert says world has given Israel ‘licence to torture Palestinians’ list 2 of 4 Macron says Lebanon’s fight is ‘just’ amid escalating attacks by Israel list 3 of 4 Trump says Iran ‘wants peace’ after US military did ‘great job’ list 4 of 4 Israeli settlers vandalise school, raise Israeli flag in occupied West Bank end of list From Pakistan to Bangladesh and Sri Lanka, through to Jordan, Egypt and Ethiopia, policymakers are facing the double whammy of being both heavily dependent on imported energy and having limited financial firepower to absorb the shock of spiking prices. In Pakistan, which imports about 80 percent of its energy from the Gulf and has lurched between economic crises for years, authorities have scrambled to roll out measures to conserve fuel. Facing the depletion of the country’s petrol and diesel reserves within weeks, officials have closed schools, introduced a four-day working week for government offices, ordered half of the country’s public sector employees to work from home, and slashed fuel allowances for official business. Pakistani Prime Minister Shehbaz Sharif said last week that he had decided against a proposed hike in petrol and diesel prices before the Eid Al-Fitr celebration, saying the gov...