Spillover Effects: How the Middle East crisis threatens food security - Focus on Myanmar

Country: Myanmar Source: World Food Programme Please refer to the attached file. Overview The escalation of the Middle East crisis in early May 2026 has significantly impacted Myanmar’s economy, mainly through rising global oil prices and supply disruptions. As Myanmar depends on imports for over 90% of its fuel needs, it is highly exposed to external shocks, with rising fuel prices quickly increasing transportation and logistics costs and driving up the prices of essential goods, particularly food. This has intensified inflationary pressure and reduced household purchasing power, placing greater strain on low-income families. At the same time, increased fuel and energy costs have raised production expenses in key sectors such as agriculture and manufacturing. Farmers are facing higher costs for diesel and fertilizers, while factories are experiencing operational challenges due to energy constraints. In addition, the increased demand for foreign currency to pay for fuel imports has led to depreciation of the Myanmar kyat, making imports even more expensive and reinforcing inflation. Limited foreign exchange reserves and fuel availability are also increasing the risk of supply shortages, which can disrupt business operations and daily life. Overall, the crisis has deepened Myanmar’s economic vulnerabilities by accelerating inflation, slowing economic activity, and worsening living conditions across the country.

Original source: Relief Web