Economic fallout from U.S.-led war is hitting the rest of the world harder - The Washington Post

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Mar 20, 2026, 10:43:53 AM (2 days ago) Mar 20
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Economic fallout from U.S.-led war is hitting the rest of the world harder

Because of greater exposure to disruptions in the Middle East, such as high natural gas prices, businesses and consumers outside the U.S. are being hit harder by the war in Iran.

Michelle Ye Hee Lee

ROME — As the United States wages war with no clear endgame, large swaths of the globe are suffering worse than Americans from the economic fallout, weathering gasoline shortages, falling currencies and more severe energy shocks.

Iran’s retaliatory attacks have largely blocked the Strait of Hormuz, turning the transit point for one-fifth of the world’s crude into a trial by fire for cargo ships and sending oil prices soaring. That is triggering hikes at the pump — on average by 23.6 percent for Americans. That’s worse than much of Europe, where gasoline prices were already far higher. But it’s less painful than the 39.5 percent spike in Nigeria, 32.9 percent hike in Laos or 31.8 percentjump in Australia, according to GlobalPetrolPrices.com.

There is no repeat in America of the gas shortages that plagued the United States in the 1970s. But they are already hitting countries in Asia. Thailand ordered civil servants to work from home while panic buying causes gas pumps to run dry in some areas. Bangladesh and other nations have begun rationing fuel. To conserve precious fuel stores, Sri Lanka and the Philippines have taken the extraordinary step of moving some workers to a four-day workweek.
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