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Iran war could pressure developing nations' household budgets: UNCTAD

13 Mar '26

1 min read

Iran war could pressure developing nations' household budgets: UNCTAD

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Rising energy, transport and food costs due to the Iran war could strain public finances and raise pressure on household budgets in developing economies, according to a UNCTAD report.
This may potentially heighten economic and social pressures and complicate progress toward sustainable development there, particularly in nations heavily dependent on imported energy, fertilisers and staple foods, it said.

Rising energy, transport and food costs due to the conflict in the Middle East could strain public finances and increase pressure on household budgets in developing economies, many of which already face high debt service burdens, limited fiscal space and constrained access to finance, according to the UN Conference on Trade and Development (UNCTAD).

This may potentially heighten economic and social pressures and complicate progress toward sustainable development there, particularly in those that are heavily dependent on imported energy, fertilisers and staple foods, UNCTAD said in a recent report titled ‘Strait of Hormuz Disruptions: Implications for Global Trade and Development’.

Economic impacts, both globally and for the region, will depend on the duration, intensity and geographic scope of the tensions, it noted.

Freight costs for shipping oil are soaring to historic highs and when gas prices go up, fertiliser prices often rise. The cost of marine fuel used by ships is rising as well, the UNCTAD report said.

Increased borrowing costs add to the potential economic burden of the disruption, it added.

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