The escalation of conflict in the Middle East since February 2026, following the USA-Israel coalition's unwarranted and unprovoked attack on Iran, continues to intensify global inflationary pressures by disrupting energy supply chains, increasing transportation costs and weakening prospects for global economic recovery. The crisis has adversely affected both regional economic activity and international commodity markets, particularly energy and food supplies, at a time when many economies had only recently begun stabilising after earlier global shocks.

A key transmission channel of the ongoing inflationary wave has been the disruption of global energy trade. The Strait of Hormuz, through which nearly 25-30 percent of global oil trade and around 20 percent of liquefied natural gas (LNG) shipments pass, remains critically important for energy-importing economies in Asia and Europe. Supply uncertainties and transportation disruptions have quite obviously pushed up global oil and gas prices, raising fuel, electricity and industrial production costs across major manufacturing economies. Countries heavily dependent on imported fuel, particularly in Africa and Asia, including Pakistan, are facing mounting difficulties in securing energy supplies, even at substantially higher prices.

According to the World Economic Outlook and information from the International Monetary Fund (IMF), the persistent and worrisome situation in global........

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