Israel-US attack on Iran: Prices of goods are increasing worldwide

The genocidal Israel and its ally the United States are jointly carrying out an aggression on Iran. This unequal war imposed by Washington and Tel Aviv has had the greatest impact on the fuel oil and natural gas markets. This situation has arisen as shipping traffic through the Strait of Hormuz, known as the world's oil transportation corridor, has almost stopped. One-fifth of the world's total oil is transported through this route.

Due to the closure of the Strait of Hormuz, crude oil or crude oil from the Gulf countries is not reaching the world market, which basically keeps the whole world moving. As this crude oil does not reach the market, the prices of oil and gas are increasing rapidly. At the same time, as transportation costs are increasing, the prices of food products are also increasing.

The prices of other products that are increasing or may increase are discussed below:

The prices of fuel oil and food prices complement each other. Fuel prices affect every level of the food supply chain, from the fertilizer used in agriculture to the trucks that deliver food from the fields to the supermarkets. Rising oil prices also directly affect shipping and transportation costs.

“Transportation is the lifeblood of the global economy,” says economist David McWilliams. “It’s about getting goods from one place to another—it’s a logistics problem, a supply chain problem, and ultimately transportation is the engine of the global economy.”

There is now a threat of ‘stagflation’—the rising inflation and rising unemployment that historically has occurred during major oil crises. Economists point to the crises of 1973, 1978, and 2008 as examples of how all significant oil price spikes in the past have been followed by some form of global recession.

In low-income countries, where people spend a large portion of their income on food and import large amounts of grain and fertilizer, rising oil prices can quickly turn into food shortages.

Products made from oil and gas

Oil and gas are used not only as fuel, but also for many other purposes. They are the raw materials for thousands of everyday products. Plastic products—such as water bottles, food packets, phone casings, and medical syringes—are all made from crude oil.

This crude oil is also the secret ingredient in synthetic fabrics like polyester, nylon, and acrylic, which are used in everything from sportswear to carpets. It is also a mainstay of the cosmetics industry, as it is used to make petroleum jelly (Vaseline), lipstick, and concealer.

Household products also rely on oil-based ingredients; laundry detergent, dishwashing liquid, and paint—all made from petroleum products.

The global food supply system relies heavily on fertilizer, which is produced from natural gas. This fertilizer is used to increase crop yields and meet food demand.

Source: Al Jazeera.