Economists: War on Iran Affects Wheat and Fuel Imports, Increases Inflation

Sudanhorizon – Hala Hamza

Banking expert and Associate Professor of International Relations and Diplomacy, Dr. Loay Abdelmoneim, stated that the continuation of the Israeli-American war on Iran for a longer period would affect Sudan through three indirect channels of economic pressure.

He explained that the war would disrupt global supply chains and raise maritime insurance and shipping costs in the Gulf, which would be reflected in the prices of key commodities that Sudan heavily imports, such as wheat and fuel.

Dr. Abdelmoneim told Sudanhorizon that although these increases are not directly linked to Sudan’s relations with Iran or Gulf countries, they would exacerbate pressures on a fragile economy already suffering from weak domestic production and a high import bill.

He further noted that given the vulnerability of the Sudanese economy to external shocks, any global rise in energy prices or transportation costs would have negative repercussions due to Sudan’s near-total reliance on imports and its reduced capacity to absorb shocks amid the ongoing internal war.

Meanwhile, banking expert Walid Dalil told Sudanhorizon that the war’s impact on the Sudanese economy operates through two main channels. The first involves direct bilateral relations with Iran, which have witnessed noticeable rapprochement since 2024. The second concerns the indirect repercussions of regional conflicts—such as the Israeli-American war on Iran—which affect energy markets and global supply chains, leading to worldwide inflationary pressures.

Dalil suggested that increased inflationary pressures resulting from the conflict could lead to disruptions in crude oil supplies, potentially raising prices by $10 to $12 per barrel. He warned that this would further strain Sudan’s already exhausted budget, adding that higher maritime transport costs would drive up the prices of imported goods in Sudan.

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