Middle East Crisis Threatens Marshall Islands' Energy Supply

Jakarta (ANTARA) - The Marshall Islands is facing uncertainty in fuel supplies over the next two months due to the conflict in the Middle East, said Finance Minister David Paul, highlighting the energy vulnerability of the remote island nation.

“Realistically, the situation is still very dynamic and anything can happen. I cannot predict its direction,” Paul stated in an interview with RNZ Pacific, as quoted by RIA Novosti in Jakarta on Friday.

He said his country is now “reliant on the market”, as around 90 percent of electricity needs are still supported by diesel generators, making it highly vulnerable to oil supply disruptions.

Paul noted that the last fuel shipment, estimated to last about two months, was purchased at three times the usual price, adding fiscal pressure on the government.

He also warned that suppliers may activate force majeure clauses due to the Middle East conflict, potentially hindering the fulfilment of energy supply contracts.

The small nation has declared a 90-day economic emergency status as a mitigation step to address the worsening energy crisis.

The policy includes energy savings in the public sector, such as reduced working hours and mandatory shutdowns of air conditioners, lights, and non-essential office equipment.

Several other Pacific countries have taken similar measures.

Tuvalu has declared an emergency status, while the Solomon Islands, Fiji, Nauru, Vanuatu, Cook Islands, and the Federated States of Micronesia have imposed fuel usage restrictions.