The Middle East conflict between Iran and Israel is not just another distant crisis – it’s a potential economic earthquake that could shake the entire world! Imagine this: the closure of the Strait of Hormuz, through which about 20 million barrels of oil pass daily, accounting for roughly 20% of the world’s daily consumption! This would mean an explosion in the prices of oil, gas, fertilizers, and food. Europe is already imposing tariffs on fertilizer imports from Russia and Belarus starting July, and gas prices, crucial for producing nitrogen fertilizers, are soaring due to production halts in Egypt and Iran. Farmers worldwide are already feeling the impact – rapeseed, linked to biodiesel production, is showing wild price swings, and the Canadian crop is uncertain. All this leads to higher food costs, as more expensive energy and transport directly affect prices. Not to mention that closing the Strait of Hormuz would raise maritime transport costs and further shake the global economy. Experts warn that escalation of the conflict could seriously disrupt commodity markets, and we could face price hikes that hit us right in the wallet. While the world trembles at these threats, fuel prices in Serbia are already rising – diesel has increased by 2 dinars per liter, and gasoline remains expensive. This is all due to uncertainty in the Middle East and increased tanker transport costs. Did you know that Iran and Canada hold the third and fourth largest proven oil reserves, while Venezuela has the largest? Yet sanctions and economic troubles prevent Venezuela from exploiting its potential. Iran, meanwhile, is in a worse position after Israeli strikes that, according to Israeli officials, killed about 30 senior Iranian security officials and 11 nuclear scientists, seriously damaging Iran’s nuclear program. All this further complicates the situation and casts a shadow over regional stability. As Europe and the world watch, the conflict continues, and the consequences are already felt on our plates and at the pumps. If you think this is far from us, think again – the global economy is connected like never before, and the Middle East is its key valve. So, what do you think – will this conflict turn into an economic disaster or will peace prevail? Drop a comment, share your thoughts, or just laugh at these dizzying prices – because sometimes, laughter is the only salvation!
How the Middle East Conflict Threatens to Wreck Global Food and Energy Prices
