The conflict between Israel and Iran affects Ethiopia through global markets, currencies, and supply chains. With Ethiopia importing all its fuel, rising oil prices strain dollar reserves and household budgets. Everyday costs for transport and food are climbing as a result.
Rising tensions between Israel and Iran are pushing up fuel prices in Ethiopia, which imports all its petroleum. This leads to higher transport costs, including for taxis, farm produce to markets, and air travel. Long queues at fuel stations result in lost time and income for drivers and traders. Fertilizer costs are climbing, prompting farmers to cut back, which will reduce crop yields and raise food prices later. Remittances from Ethiopians in the Middle East face risks as conflict disrupts jobs and movement. These pressures come amid Ethiopia's debt restructuring efforts, foreign exchange shortages, and fiscal strains. While oil exporters and traders may gain from volatility, most Ethiopians face higher costs with stagnant incomes, forcing household adjustments.
