Iran-Israel Conflict: Ghana could face tough times

Deputy Ranking Member on Parliament’s Energy Committee and Member of Parliament for Afigya Kwabre North, Collins Adomako-Mensah, says Ghana may face serious economic challenges if hostilities between Iran and Israel continue to escalate.

Speaking on the possible implications of the ongoing conflict between the two Middle Eastern powers on the Channel One Newsroom on Sunday June 15, Adomako-Mensah highlighted the likely impact on global oil prices and, by extension, Ghana’s fuel-dependent economy.

“We don’t live in an island. I mean these are two powerhouses,” he stated. “Yesterday, just because of this, there was a lot of disruption to international travel. These are two oil-solution countries, and it is definitely going to have a toll on our oil prices.”

His comments come amid growing concerns over the global economic fallout of escalating hostilities in the Middle East, which has already triggered volatility in international oil markets. Brent crude prices have spiked in recent days, raising fears of increased costs for petroleum-importing nations like Ghana.

Adomako-Mensah expressed hope that diplomatic efforts would soon lead to de-escalation, warning that a prolonged conflict could spell serious economic challenges for Ghanaians.

“I am just hoping that, as quickly as possible, peace is brought to reign. Otherwise, we should brace ourselves for very tough times ahead,” he said.

The MP’s statement underscores the vulnerability of Ghana’s economy to external shocks, especially in the energy sector. His remarks also serve as a caution to policymakers to plan ahead for possible disruptions in supply chains and rising costs associated with fuel imports.

The government has postponed the implementation of the controversial Energy Sector Shortfall and Debt Repayment Levy (ESSDRL), partly citing global uncertainties, including the Iran-Israel tensions. While some critics dismissed that explanation as inadequate, Adomako-Mensah’s comments suggest there are legitimate fears about how such geopolitical developments could ripple through Ghana’s economy.