PM Says Iran War Driving Global Economic Shock, Energy Disruption

Egypt’s Prime Minister Mostafa Madbouly said on Tuesday that the war in Iran has triggered “unprecedented” global economic challenges, disrupting energy supplies, trade flows and inflation trends worldwide.

In his address to parliament, Madbouly said the conflict had affected countries across the world through pressure on oil and gas supplies, supply chains, transport, industry and tourism, describing the impact as immediate and far-reaching.

He said global oil markets had suffered a “historic shock” following attacks on energy infrastructure in the Middle East, disruptions to tanker traffic through the Strait of Hormuz, and a sharp fall in supply.

Madbouly added that geopolitical tensions had caused severe volatility in global energy markets, directly affecting prices of oil, gas, goods and services.

He said Egypt’s future policy would focus on sustaining economic activity through its 2026/2027 development plan, which includes planned investments of around 3.8 trillion Egyptian pounds and aims to expand the private sector’s share of total investment to 60%.

The prime minister said energy transition was central to improving economic resilience, adding that Egypt was accelerating its shift towards renewable energy to reduce reliance on imported fuels.