Global energy price surge costs citizens over $100 billion amid Middle East conflict: Report

Ordinary citizens around the world have lost over $100 billion to oil and gas companies due to increased energy prices caused by the ongoing conflict in the Middle East, according to the non-governmental organisation, 350.org.
According to 350.org, the public has been forced to incur between $104.2 and $111.6 billion in additional energy costs within one month of the Middle East conflict, resulting in immediate economic impacts, including mass layoffs in Bangladeshi textile factories.
The organisation said its “analysis calculates losses from price spikes using weighted oil and gas price averages over the first month of the war—involving the United States, Israel and Iran—combined with global consumption levels and adjustments for uncertainty, such as reduced demand and rationing in response to rising prices.”
The effects of the conflict have also led to fuel rationing in Kenya and a looming recession in the United States, the report noted.
“The $111 billion lost to higher oil and gas prices alone could instead build enough solar power to supply around 40 million households in high-consumption countries, or about 150 million households in lower-consumption contexts,” the organisation stated.
The organisation said the analysis does not currently include wider knock-on effects, such as rising fertiliser and food costs, declines in economic output and employment, or broader inflation driven by unstable prices of oil and gas, which may signal severe financial loss for the public.
Commenting on the report, Anne Jellema, 350.org’s chief executive, said, “On top of the incalculable suffering of families and communities torn apart by the war, ordinary people around the world are paying an extraordinary price through fossil fuel-driven energy spikes.
“Over $100 billion has gone straight into the pockets of fossil fuel companies, while families struggle to afford energy and basic necessities. The case for windfall taxes has never been clearer.”
Meanwhile, the organisation warned that urgent intervention is needed to tackle the impacts of the current situation on lower-income households and countries already facing economic strain.
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