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

Rising tensions between Iran and regional powers are driving up fuel prices across developing economies in Asia, Africa, and the Middle East, with countries like Pakistan and Egypt facing particular strain. Energy costs have surged due to concerns about Middle Eastern oil supplies and shipping disruptions, hitting nations that depend heavily on energy imports and have limited financial buffers. Developing countries already struggling with inflation and debt face mounting pressure on their budgets for fuel subsidies, transportation, and electricity generation. The price increases risk widening inequality in economies where low-income populations spend a larger share of income on energy and food. Global South nations have fewer options to hedge against energy shocks compared to wealthy economies, potentially threatening growth and political stability in regions already dealing with economic fragility.