Impact of Iran War Spreads, Global Energy Crisis Hits Poor Countries

Low- and middle-income countries are the most affected by the energy crisis triggered by US and Israeli attacks on Iran. The war has halted almost all oil exports through the Strait of Hormuz, a narrow route that carries about one-fifth of the world’s oil and liquefied natural gas (LNG) supply.

This disruption is shaking the global energy market, sparking price surges and placing immense pressure on countries dependent on energy imports. Poor countries in Asia and Africa must compete with wealthy nations in Europe and Asia, as well as major buyers like India and China, for increasingly scarce gas supplies.

This competition is driving prices even higher and exacerbating economic pressures. Several countries heavily reliant on energy imports, such as Benin and Zambia in Africa, and Bangladesh and Thailand in Asia, are at risk of experiencing the greatest shocks.

Rising fuel prices directly impact transportation costs and food prices, while limited foreign exchange reserves make it difficult for them to pay for imports if prices remain high.

Africa is considered the most vulnerable because many countries in the region still depend on imported oil to run transportation and supply chains. This situation underscores the need for long-term strategies to strengthen energy resilience.

“It makes strategic sense for African countries to build long-term energy resilience through investments in cleaner energy,” said Kennedy Mbeva from the University of Cambridge on Friday (20/3/2026).

However, not all countries are opting for renewable energy paths. South Africa, for instance, is considering building new LNG import terminals and gas-fired power plants. On the other hand, Ethiopia is accelerating its clean energy transition, including a ban on petrol and diesel vehicles since 2024 to promote electric vehicle use.

Analysts from an Ethiopian think tank, Hanan Hassen, assess that the main challenge is not just surviving the crisis, but ensuring that energy disruptions do not derail the country’s development path. “The real challenge is to ensure that this crisis does not disrupt the direction of development,” she said.