Middle East conflict drives global surges in rice and petrol prices

The conflict between the United States and Israel against Iran has triggered significant global economic disruptions, specifically affecting food and energy costs. Since the war began on February 28, 2026, US rice prices have surged by more than 47%. This spike is attributed to the choking of the Strait of Hormuz, a critical maritime bottleneck, which has increased shipping costs and insurance premiums. Additionally, fertilizer prices have risen by approximately 40%, further straining the food supply chain. India, the world’s largest rice exporter, has reported a decline in shipments during the first four months of 2026, with Basmati rice exports to Gulf markets particularly impacted by the conflict zone.

Global petrol prices have also seen widespread increases, with at least 145 countries reporting higher costs at the pump. Myanmar recorded a 56 percent increase, followed by Bhutan at 55 percent and Cuba at 51 percent. In the United States, the national average for regular petrol rose by 39 percent, increasing from $2.94 to $4.09 per gallon. These rising energy costs are creating a cascading effect, driving up the price of food by impacting every stage of the supply chain, from fertilizer production to transportation.