Uganda is starting to experience the economic ripple effects of the ongoing conflict in the Gulf, with disruptions felt across key sectors such as tourism, aviation, trade, and logistics.
While the full impact has yet to materialize, analysts caution that conditions could worsen before any signs of recovery emerge.
The crisis follows three weeks of intensified clashes in the Middle East. After a series of attacks backed by the United States, Iran retaliated by imposing a blockade on the strategic Strait of Hormuz, a vital shipping route that handles approximately 20 to 25 percent of the world’s crude oil supply.
The blockade has caused global oil prices to surge past $100 per barrel, placing additional pressure on economies worldwide.
In Uganda, the government initially reassured citizens of stability and warned oil companies against hoarding fuel. Nevertheless, fuel prices at local petrol stations have already risen from UGX 4,800–5,000 per litre to nearly UGX 5,300.
The situation is compounded by the weakening of the Ugandan shilling against the US dollar, raising concerns over rising inflation and increased import costs.
Economic experts recommend urgent measures to mitigate the impact. Suggested interventions include curbing speculative business practices, accelerating domestic oil and gas production, and strengthening long-term fuel reserves to ensure stability.
Without prompt action, Uganda’s economy may face further strain as the Gulf conflict continues to disrupt global markets.
