Middle East crisis and US foreign policy impact Namibia's economy

This economic hardship is attributed to the war's effect on global energy markets, causing crude oil prices to surge and disrupting maritime routes like the Strait of Hormuz. Following US-led military strikes on Iran and Tehran's subsequent declaration of war, unleaded petrol prices rose by 56.9% and diesel by 122.1% between February and March 2026. The Ministry of Industries, Mines and Energy announced further fuel price increases, with petrol rising by N$2.50 per liter and diesel by N$4.00 per liter from April 1, and an additional N$4.63 per liter for diesel in May.

Minister Modestus Amutse noted that geopolitical tensions and the weakening Namibia dollar against the US dollar have exacerbated import costs. The Namibian government intervened by reducing fuel levies by 50% for three months, utilizing the National Energy Fund, which has been significantly depleted, incurring an under-recovery of approximately N$1.3 billion for April and May. The weakening Namibia dollar, pegged to the South African rand, further increases the cost of imported goods.

President Netumbo Nandi-Ndaitwah expressed concern over the US-Israel-Iran conflict's potential negative impact on the economy. The International Monetary Fund identified the Middle East war as the primary risk to Namibia's economy, projecting a real GDP growth of only 2.1% in