Middle East conflict leaves developing countries paying the price

(UN News) With another weekend of strikes involving the United States and Iran, renewed diplomatic efforts on Monday have eased immediate fears of escalation, but the economic shockwaves are already taking a heavy toll on some of the world’s poorest countries. According to the UN Development Programme (UNDP), developing economies are being forced to spend hundreds of billions of dollars shielding households from soaring energy costs, leaving less money for schools, hospitals and climate action. Their new report, Military Escalation in the Middle East: Cushioning the Global Shock, finds that governments have relied on fossil fuel subsidies, price caps and tax rebates to protect families from higher oil prices triggered by instability in the Middle East. While these measures provide short-term relief, they come at a steep long-term cost, the agency reports. UNDP projects global fossil fuel subsidies will climb to $1.1 trillion in 2026, around $410 billion higher than in 2025 if oil prices average $88.60 a barrel. In a more severe scenario, with prices reaching $110 a barrel, subsidies could rise to $1.43 trillion. – Middle East conflict leaves developing countries paying the price | UN News