world-economy

Middle East Conflict Ripples Through Global Supply Chains as Freight Costs Rise

Escalating tensions in the Iran region are driving up transportation costs worldwide, pressuring economies already grappling with inflation concerns. The conflict has made energy more expensive across markets, forcing governments and businesses to reassess economic outlooks. France's budget deficit is widening as rising costs from the geopolitical instability strain public finances alongside slowing economic growth. Japan's trade deficit unexpectedly expanded as import expenses climbed due to higher oil prices tied to the conflict. Central banks from Sri Lanka to Australia are monitoring the situation closely as inflation remains a primary concern for consumers and policymakers. The disruption is visible in freight operations, with some carriers like Etihad Cargo expanding capacity on key routes to meet shifting demand.