Iran war sends shockwaves through African fuel market and economies

Surging oil prices triggered by the war with Iran are rippling across African economies, threatening higher fuel costs, rising inflation and renewed pressure on currencies across the continent.

Africa imports most of the petroleum products it consumes, leaving many economies highly vulnerable to supply disruptions tied to tensions in the Middle East, a region central to global oil flows.

“Africa is a net importer of oil products, meaning it is heavily exposed to shocks like these,” said Nick Hedley, an energy transition research analyst at Zero Carbon Analytics.

When global oil supplies tighten, Nedley said, prices rise while African currencies often weaken as investors move funds into safe-haven assets such as the U.S. dollar.

That combination amplifies the impact of price spikes in import-dependent markets such as Kenya and Ghana.

A similar dynamic unfolded after Russia’s full-scale invasion of Ukraine in 2022, when rising crude prices and a weakening