PRESIDENT John Dramani Mahama has urged African countries to brace up for possible economic shocks in the wake of the escalating tension in the Middle East.
He said as the epicenter of global oil supply, the hostilities between Iran on one side and the US and Israel on the other, could disrupt global oil supply chain and spiral prices upwards.
“We know that big shocks will come but when they come, we must prepare ourselves to make sure that our people are protected. As it is, the Middle East is the epicenter of global oil supply.
“We know that when the prices of crude go above a certain amount, it has negative effect on our countries,” President Mahama indicated.
He made this observation in a meeting with his Tanzanian counterpart, President Samia Suhulu Hassan, Monday, at Arusha on his visit to the East African country.
The tensions between the three countries has led to the killing of Iranian Supreme Leader, Ayatollah Ali Khamenei.
The 86-year old was killed alongside some of his security capos in a joint US-Israel strikes on Saturday.
In a retaliatory move, Iran has also launched waves of missile and drone strikes, hitting US bases in nearby countries – UAE, Saudi Arabia, Kuwait, Bahrain, and Iraq.
Iran has also announced the closure of the Strait of Hormuz, the corridor which is used in transporting about 20 per cent of the world’s oil consumption.
Already, gas prices, according to the BBC, have spiked and stock markets indexes tumbled after an Iranian official said his country would “set fire” to anyone trying to pass through the Strait of Hormuz shipping route.
As the conflict escalates with no end in sight, President Mahama said the warring factions must prioritise peace and return to the dialogue table for an amicable solution.
“So we call for the cessation of the conflict and the return to dialogue so that we can see peace come back to that region,” he appealed.
BY JULIUS YAO PETETSI
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