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The current conflict between Iran, the United States, and Israel is having major global consequences. A national energy emergency has been declared in The Philippines, with the President indicating that the continuing war is threatening the availability and stability of the country’s energy supply.
According to reports, the authorities say they have enough fuel to last about 45 days at typical consumption levels. South Korea has begun a nationwide energy-saving campaign, calling on people to ride bicycles for short trips and reduce the length of showers, while Japan will soon begin releasing oil from its emergency reserve.
One of the biggest effects of the war is on oil and global trade. The Strait of Hormuz, a chokepoint through which approximately 20% of the world’s oil supply passes, is currently an area of intense focus.
Attacks on oil infrastructure and shipping routes have increased oil prices and volatility, raised global inflation risks, and severely disrupted supply chains.
It doesn’t take a rocket scientist to tell us that when energy prices rise, everything else becomes more expensive worldwide, particularly fuel, food and transport.
Global trade and travel are being disrupted. Major shipping routes are being avoided or delayed. Lengthy delays in goods will be experienced, along with higher costs, and economic uncertainty globally.
The war is reshaping international relations. Countries are split between supporting the U.S./Israel or condemning the attacks. Not unexpectedly, major powers like Russia and China are cautious, avoiding direct involvement. NATO and its allies are showing internal disagreements, most notably over military cooperation
All this is contributing to a more fragmented and tense global order.
Financial market instability is of great concern. Investors face uncertainty about energy supply, geopolitical risk and economic growth. We are already witnessing volatile stock markets, increased borrowing costs, and considerably riskier investment conditions.
Only last week Premier Brantley voiced concern over the stability of funding for key development projects, warning that the ongoing geopolitical tensions, particularly in the Middle East, could jeopardise critical investments in the Federation.
He cautioned that residents must understand the potential implications of decisions being made beyond the region, underscoring the broader impact of global conflicts on small island states.
By now, most world leaders would have recognized that we all could be in for the long haul. Even if hostilities cease very soon, the damage has already been significant. The effects will be felt in the not-too-distant future.
The Iran–U.S.–Israel war is not just a regional conflict; it’s a global shock event.
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