MIDDLE EAST LIVE 20 March: Energy shocks deepen as strikes hit infrastructure
- UNAA
- 5 days ago
- 9 min read
20th March 2026
The crisis in the Middle East continues, with strikes and counter-strikes reported across the region, driving civilian casualties, displacement and rising humanitarian needs. Energy assets in Gulf States continue to be hit, with serious long-term damaged reportedly sustained at Qatar's Ras Laffan gas hub. Oil prices remain above $100 a barrel, underscoring the growing global economic impact.
HIGHLIGHTS
Hostilities continue across region: Strikes and counter-strikes continued across multiple fronts, posing ongoing risks to civilians, infrastructure and essential services.
Global food security concerns grow: WFP cautioned that disruptions to supply chains, and rising energy and fertilizer costs could push millions more into hunger if the crisis persists.
Energy and trade disruptions deepen: Attacks on energy infrastructure and reduced shipping through the Strait of Hormuz are keeping oil prices elevated and disrupting global trade and logistics.
Humanitarian needs continue to rise: Aid agencies report growing displacement and worsening conditions for vulnerable populations, with access constraints and rising costs hampering response efforts.
Impacts spread beyond the region: We've done some in-depth original reporting this week looking at how countries far from the Gulf, such as Nepal, Sri Lanka, Pakistan, Myanmar and Afghanistan, are facing rising fuel costs, supply disruptions and economic pressures.
We also have an update from Afghanistan, where the raging war in the Middle East and escalating hostilities with Pakistan are complicating an already dire humanitarian and economic crises.
Afghanistan: Rising costs and displacement pressures
The wider Middle East crisis is adding new strain to Afghanistan’s fragile economy, with rising fuel prices and economic uncertainty driving up the cost of transport and food.
At the same time, escalating hostilities with Pakistan are disrupting supply routes and compounding the challenges faced by Afghan households.
Prices for key staples, including imported rice and vegetable oil, have increased by 20-40 per cent since late 2025, further eroding the purchasing power of families already struggling to meet basic needs.
Meanwhile, renewed instability is placing additional pressure on communities already coping with large numbers of returnees. After nearly three million Afghans returned from neighbouring countries last year, there are growing concerns that further displacement could overwhelm already stretched services and deepen humanitarian needs.
We’ve been bringing you updates from the ground about the impacts of the Gulf war beyond the region. Here’s an update from Myanmar.
Myanmar: Mounting strain as crisis adds to existing challenges
The impact of the Middle East crisis is piling on the pressure in Myanmar, where years of conflict and political instability have already weakened the economy.
Fuel shortages have triggered strict rationing measures, including an odd-even vehicle system and controlled sales, disrupting transport, businesses and humanitarian operations. Aid partners warn that limited fuel availability could affect the delivery of assistance across the country.
At the same time, supply chain disruptions in regional hubs are delaying imports and driving up freight and insurance costs, contributing to rising inflation. Higher fertilizer prices are also threatening the upcoming agricultural season.
In a country heavily reliant on imports, increasing transport and logistics costs are pushing up the price of food and essential goods. These shocks are further eroding purchasing power and deepening hardship for families already facing multiple, overlapping crises, including those still recovering from last year’s earthquakes.
We’ve been bringing you updates from the ground about the impacts of the Middle East crisis beyond the region. Here’s an update from Nepal.
Nepal: Rising fuel costs and travel disruptions
The impact of the Middle East crisis is deepening in Nepal, with fuel prices rising by nearly 10 per cent to around Rs. 172 per litre ($1.20), driving up transport and food costs.
Flight disruptions during the peak spring tourism season have led to widespread cancellations, with some tourist districts reporting hotel bookings dropping by as much as half, affecting local businesses and livelihoods.
Thousands of migrant workers are also stranded in Kathmandu due to flight cancellations, highlighting growing mobility challenges.
With Nepal heavily reliant on remittances and overseas employment in the Gulf, these disruptions are adding to economic pressure and uncertainty for households across the country.
Authorities have implemented stricter market monitoring to prevent hoarding and black-marketing of essentials such as liquefied natural gas. Pressure on the energy sector remains somewhat limited due to Nepal’s reliance on hydropower.
We’ve been talking to UN teams on the ground about the impacts of the Middle East crisis beyond the region. Here’s an update from Pakistan.
Pakistan: Spike in fuel, grocery prices
The effects of the Middle East crisis are being felt acutely in Pakistan, with immediate impacts on fuel availability, prices and daily life.
Long queues formed at petrol stations as shortages emerged, followed by a sharp increase in fuel prices – rising by 55 rupees to 322 rupees per litre (about $1.20) – driving up transport and food costs.
Authorities have introduced emergency mitigation measures, including school closures until the end of March, a shift to online learning, and an austerity and fuel conservation plan that includes reduced government fuel use and expanded remote working.
The economic strain is already visible, with rising prices for essential goods such as food, particularly during Ramadan. Disruptions to flights and growing uncertainty are also affecting mobility and livelihoods.
Aid reaches isolated communities in southern Lebanon
A UN Children's Fund (UNICEF)-led convoy yesterday delivered life-saving supplies to villages around Tyre, in southern Lebanon – areas that have been cut off by the conflict.
Four trucks reached more than 6,000 people, including over 2,000 children, providing safe water, hygiene kits and essential items to help prevent disease and cope with deteriorating living conditions.
Humanitarian partners say efforts are continuing to reach hard-to-access areas to support families affected by the crisis.
Sri Lanka: Pressure on fuel supply, foreign exchange
Rising fuel prices linked to the Middle East crisis are placing immediate strain on Sri Lanka’s economy, where petroleum imports account for a significant share of total imports.
Higher oil prices are increasing import costs, freight charges and pressure on foreign exchange reserves, while rising fuel costs are feeding into higher prices for transport, food and essential goods.
Although inflation had eased recently, new price pressures are expected to emerge.
Authorities have introduced fuel rationing and conservation measures, including a four-day school week and weekly public holidays for the state sector (except essential services), alongside reduced government operations to curb consumption.
There are also concerns about potential disruptions to overseas employment and a dip in tourism due to air route challenges. Together, these point to early but growing pressures on inflation and the broader economy.
Air travel disruption adds to economic losses across Middle East
Airspace closures and security risks linked to the conflict have forced widespread flight cancellations across major Gulf aviation hubs, according to analysis by the Economic and Social Commission for Western Asia (ESCWA) – UN's development arm for the region.
The two weeks – from 28 February to 12 March – saw more than 18,400 flights were cancelled across key airports including Dubai, Doha, Abu Dhabi and Riyadh. Some hubs experienced near-total shutdowns in the early days of the escalation, with operations only gradually resuming.
ESCWA estimates airline revenue losses at nearly $1.9 billion in the first 12 days alone, with potential losses rising to $3.6 billion within a month if disruptions continue.
The disruptions are further straining regional transport and logistics networks, with knock-on effects for trade, tourism and economic activity.
Middle East war shockwaves ripple through Asia-Pacific fuel and supply chains
The fallout from the war in the Middle East is rippling far beyond the Gulf, disrupting fuel supplies, shipping routes and supply chains across Asia and the Pacific, with some of the region’s most vulnerable economies already feeling the strain through rising prices, rationing and threats to jobs, food security and remittances.
The immediate impact is visible in sharp increases in transport costs, energy and fertilizer prices, alongside currency pressures and financial market volatility.
Stay with us as we bring you updates from across the Asia-Pacific region. You can also read the UN News special report here.
Logistics disruptions hinder humanitarian response across region
Humanitarian logistics operations are facing mounting challenges as the crisis disrupts airspace, ports and fuel supply routes.
The Logistics Cluster – led by the UN World Food Programme (WFP) to coordinate transport and supply chains during crisis response – reports airspace disruptions across several countries.
Access to key Gulf ports also remains heavily restricted, with the Strait of Hormuz effectively closed and major hubs experiencing delays and backlogs. While some ports, including Beirut and Jebel Ali, remain operational, shipping movements are constrained and bookings uncertain.
Rising fuel prices – now above $100 per barrel – are further increasing delivery costs and straining budgets.
Efforts are underway to ease bottlenecks, including a proposed “Green Corridor” between Oman and the UAE to facilitate customs clearance, but partners warn that constraints continue to slow the delivery of life-saving aid.
Eid marked by displacement and hardship across the region
As families observe Eid, UN agencies say the festival comes at a difficult time for many affected by the ongoing crisis.
In Lebanon and across the wider region, displacement and insecurity have left large numbers of people without safe or stable conditions to mark the occasion.
Echoing this, UN Secretary-General António Guterres said it is “devastating that conflict and violence prevent many people from celebrating with their loved ones.”
The UN Children's Fund (UNICEF) and the World Food Programme (WFP) say they continue to provide essential support to affected communities, including food, water and basic supplies, while emphasizing the need for peace, protection and sustained humanitarian assistance.
Trade disruptions and vulnerabilities deepen regional impact
ESCWA further warns that the conflict is severely disrupting global trade routes, with reduced shipping through the Strait of Hormuz already causing an estimated $30 billion in trade losses over two weeks.
The shock is spreading through energy, aviation and financial systems, while rising fuel costs are increasing inflation and fiscal pressure in energy-importing countries.
With many economies already facing high debt and limited fiscal space, ESCWA says the crisis risks intensifying humanitarian needs across a region where millions were already in vulnerable conditions.
War could cost Arab region up to $150 billion, UN economists warn
The UN Economic and Social Commission for Western Asia (ESCWA) says the conflict is already inflicting heavy economic losses, estimated at $63 billion in the first two weeks.
If the war continues for a month, losses could reach nearly $150 billion, or 3.7 per cent of regional GDP.
Shipping through the Strait of Hormuz has fallen by up to 97 per cent, disrupting trade flows worth billions daily.
ESCWA warns that pre-existing vulnerabilities are deepening the impact, with Lebanon facing some of the most severe economic and humanitarian consequences as strikes continue.
IMO condemns attacks on shipping, calls for safe-passage framework
In case you missed it, here's a look back at the emergency session of the International Maritime Organization (IMO) Council that concluded yesterday in London. Nations condemned attacks on merchant vessels and threats to shipping in and around the Strait of Hormuz.
Member States called for an internationally coordinated response to safeguard civilian shipping and reaffirmed that freedom of navigation must be respected under international law.
The Council also urged an immediate halt to attacks on seafarers and called for measures to ensure their safety and wellbeing, including access to essential supplies and crew changes. It also backed the establishment of a safe maritime framework to enable the evacuation of vessels trapped in the Gulf.
“Inaction is not an option, that words alone are not sufficient,” said IMO Secretary-General Arsenio Dominguez, urging concrete steps to protect seafarers and global trade.
WFP expands aid across Lebanon and region as food security risks rise
In Lebanon, WFP has reached 265,000 people with food and cash assistance since early March, including support delivered through inter-agency convoys to conflict-affected areas in the south.
Across the region, assistance is also being extended to newly displaced families, including food distributions at border crossings into Syria.
WFP warned that the escalating crisis could trigger a major global food security shock, with rising energy and fertilizer costs driving up food prices and increasing hunger risks in vulnerable countries worldwide.
WFP scales up support for refugees in Iran amid rising needs
World Food Programme (WFP) – UN's emergency food relief agency – is providing emergency assistance to vulnerable populations in Iran as the crisis continues to escalate.
More than 32,500 Afghan refugees in settlements have received cash top-ups to help meet immediate food needs.
WFP warned that disruptions to supply chains and rising costs are increasing pressure on already vulnerable communities, as global food insecurity risks grow.
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