Oil Prices Soar as Global Economies Feel Pinch of US-Iran Conflict

President Donald Trump's decision to launch the United States into a war with Iran has had far-reaching consequences beyond the battlefield. The conflict has disrupted oil and gas shipping in the Strait of Hormuz, a critical route for about 20% of global oil consumption, causing oil prices to surge above $100 a barrel.

This increase in fuel costs has led to protests erupting globally as governments scramble to contain rising fuel costs. In Bangladesh, the garment industry, its largest export sector, has suffered with 55% of knitwear factories reporting buyers canceling or cutting orders since late August, while around 78% have partially halted production.

In Portugal, diesel prices reached an all-time high in early September despite the government having cut the Tax on Petroleum and Energy Products. The energy regulator investigated earlier price increases but found 'no evidence of operators taking advantage.'