Fuel retail prices jump in response to crisisEthiopia is facing mounting economic pressure as a global energy shock triggered by disruptions in the Strait of Hormuz drives up fuel prices, threatens inflation, and strains the country’s already fragile external balance. The Strait of Hormuz is a critical artery for global energy supply, and its near shutdown has sent crude oil prices sharply higher while increasing the cost of transporting fuel worldwide. Rising global oil prices are translating into higher import costs, placing additional pressure on foreign exchange reserves and widening the country’s trade deficit. UNCTAD warns that rising oil prices are closely linked to higher inflation, particularly in developing economies. For Ethiopia, this may translate into higher costs for imported goods, reduced competitiveness in export markets, and slower overall economic growth.

Source: Ethiopian News April 04, 2026 20:10 UTC