Israel-Iran fallout sparks concerns for Africa's oil producers
Oil prices have surged following Israel's initial strikes on Iranian targets on Friday and retaliatory attacks by Tehran amid concerns that a broader regional conflict could disrupt oil exports from the Middle East.
Cheta Nwanze, partner at Lagos-based risk advisory company SBM Intelligence, told Semafor that economies across the continent, including oil producers, were likely to be hit hard.
'Higher crude prices will almost certainly translate into increased domestic fuel and transport costs, stoking inflation,' he said, adding that non-oil producing nations face higher energy importation bills that will drain foreign exchange reserves.
A number of African governments have scrapped fuel subsidies in recent years, following pressure from the International Monetary Fund, which means petrol price fluctuations will be felt more sharply.
The military strikes have also prompted diplomatic responses. The African Union expressed 'grave concern' about the attacks, which it said threaten international security. South Africa stressed its fear for 'nuclear safety' after Israel targeted Iran's nuclear facilities, while Nigeria warned the conflict could destabilize the Middle East.
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