Analysts warn of trade disruptions across Africa as Israel-Iran tensions escalate

Africa may be thousands of kilometers from the ongoing Israel-Iran conflict, but experts warn the ripple effects could be deeply felt across the continent. Analysts predict potential disruptions to trade, soaring market instability, and economic pressures that are unlikely to ease anytime soon.

One of the most immediate threats is the potential rise in energy prices. According to Mustafa Ali, an international relations expert, "The prices for energy goods like oil and petroleum are going to rise, and that is going to affect many African countries that primarily rely on fossil fuels to run their industries, transport systems, and factories."

Goldman Sachs has already forecast a $10 increase in benchmark crude prices. On top of that, the potential closure of the Strait of Hormuz, a critical oil transit chokepoint controlled by Iran, could drive prices even higher, further destabilizing economies that are already vulnerable.

With the possibility of higher oil prices, sub-Saharan Africa could face rising inflation and fuel shortages. This would put additional strain on economies already struggling with the ripple effects of global uncertainties, including supply chain disruptions and inflationary pressures in key sectors.

Economic analyst Cavince Adhere emphasizes the need for Africa to be proactive in understanding the dynamics of the conflict and its potential domestic impacts. "Africa has to take up strategic repositioning to understand the conflict's dynamics and what it means for them domestically," he said. "This means talking to populations about what is expected and the likelihood of this conflict’s impact on their lives."