US Israel Iran War: The ongoing Middle East Crisis is soon going to hurt dinner tables and wallets across the globe. According to market analysts, the severe impact of the Iran war would be felt months after it comes to an end.
US Israel Iran War-How Would The Common Man Survive?
Food inflation, LPG shortage, weakening global currencies, acute shortage of basic essentials such as bread, rice, wheat and sugar are likely on the cards even for developed economies of the world and stable countries such as India. Moreover, supply chains across the globe would stay disrupted in 2026 and probably even in 2027 and 2028.
The shortage of fertilizers, ammonia, helium, feed for livestock, basic food supplies, petroleum products and key ingredients used in different food products would empty wallets across the globe. Farmers would be forced to reduce the number of crops planted or fertilizers used. Brent Crude and other petroleum products would be available in limited quantities at astonishingly higher prices. This, in turn, would further empty wallets of the common men across the globe.
Store-bought condiments, food products made with high fructose corn syrup and soft drinks would cost more. The supplies of staple crops such as rice, wheat and corn would be impacted the most as all of them require potassium, nitrogen and phosphate. To make things worse, the indefinite closure of the strategic Strait of Hormuz has significantly reduced the supply of all three, increasing the cost of potassium, nitrogen and phosphate.
IMF Cuts Global Growth Outlook
Kristalina Georgieva, the Managing Director of International Monetary Fund (IMF), has remarked that the ongoing Middle East Crisis would result in slower global growth, pushing inflation higher. IMF remarked that supply chains have been strained, Brent crude prices have reached to unprecedented highs and global oil supply has shrunk by 13-15 percent.
Recently, damages to 72 energy facilities were reported by International Energy Agency out of which 1/3rd have suffered massive destruction.
