Middle East conflict could raise fuel prices and cost of living in Ghana, Mahama warns
President John Dramani Mahama has cautioned that the ongoing conflict in the Middle East could lead to higher fuel prices and increased cost of living in Ghana if the situation spreads to Gulf states.
He gave the warning during bilateral talks with Tanzanian President Samia Suluhu Hassan on March 3, 2026, on the sidelines of the African Court on Human and Peoples’ Rights’ 2026 Legal Year in Arusha.
President Mahama said the conflict involving the United States, Israel and Iran poses a risk to global oil supply, especially if counterattacks extend to Gulf states, which play a central role in energy production and transportation.
He noted that Ghana depends largely on imported crude oil and refined petroleum products, making the country vulnerable to global price changes.
He explained that any sustained increase in oil prices would reflect directly in fuel costs, transport fares, food prices and the general cost of doing business.
President Mahama said instability in the Middle East could have wide economic effects, particularly for African countries that rely on imported fuel. He added that recent tensions involving Gulf states, a major route for global oil shipments, have raised concerns about possible supply disruptions.
He pointed to the strategic importance of the Strait of Hormuz, a major shipping route through which a large share of the world’s oil supply passes daily. He warned that any disruption to that route could trigger a sharp rise in global oil prices, with direct consequences for Ghana’s economy.
President Mahama said such external shocks could affect ongoing efforts to stabilise inflation and the exchange rate following Ghana’s recent debt restructuring.
During the meeting, he also spoke about developments in Ghana’s economy, stating that reforms in the small-scale gold sector had increased exports from 63 to 104 metric tonnes within nine months, contributing about US$10 billion to the economy.
He further announced that Ghana intends to finance cocoa purchases locally and process at least 400,000 metric tonnes each year.
President Mahama said Ghana will present a resolution at the United Nations General Assembly on March 25, seeking recognition of the transatlantic slave trade as a crime against humanity. Tanzania has indicated its intention to support the resolution.
