HGP Nightly News – President Dr. Irfaan Ali is warning that the ongoing conflict involving Iran could have serious long-term consequences for global fuel, food, shipping and agricultural costs, with direct implications for Guyana and the wider Caribbean.
The President said the effects of the war are not limited to the immediate destruction being seen overseas, but extend to the global systems that support energy, food production and trade. “The consequences of this war is not short term,” Ali said, noting that the world is already facing disruption in fuel, refined products, gas, petrochemicals, fertiliser, glass, minerals and other parts of the energy ecosystem.
Ali described the situation as a major global energy crisis, saying it has created what he called “the largest supply disruption in the history of the global oil market.” He pointed specifically to the Strait of Hormuz, which he described as a narrow but critical waterway through which a major share of global oil, petroleum products, liquefied natural gas, fertiliser and other energy-linked shipments passes daily.
According to the President, the disruption has caused “widespread volatility” and “supply chain shocks,” especially for countries that depend on imported fuel, gas, fertiliser and refined products. He said policymakers must understand the seriousness of the moment and “stop monkeying themselves around as if we are operating in a normative environment.”
Ali also warned that the crisis could worsen food insecurity across the world. Citing international projections, he said the conflict could push “45 million additional people into acute hunger by mid-2026,” potentially leading to record levels of global hunger.
The President said fertiliser prices are also rising sharply, with serious consequences for farmers and food systems. “This is what farmers, the food ecosystem, and governments will be faced with,” he said, adding that higher fertiliser, fuel and shipping costs will eventually affect food prices and other basic goods.
On oil prices, Ali said crude prices have surged far beyond pre-conflict levels, while transport, maritime insurance, pilotage fees and risk allowances for shipping workers have also increased. “Understand the multiplier effect of all of this on the global economy,” he warned.
Turning to the region, Ali said Latin America and the Caribbean are highly vulnerable because of their dependence on imported fuel for power generation, agriculture, tourism and transport. He noted that the aviation sector is already adding fuel surcharges, which could affect tourism-dependent countries.
For Guyana, the President said the Government has removed excise taxes on fuel imports, describing the country as “one of the few countries” and possibly the only one in the region to take that step. However, he cautioned that Guyana remains exposed to global pressures through shipping costs, imported goods, fertiliser prices and regional economic impacts.
