US-Israel War on Iran's Economic Winners and Losers
· outdoors
Fueling Inequality: The Unseen Consequences of War on Food and Energy Markets
The US-Israel war on Iran has had a devastating impact on global food security, with the most vulnerable among us – those struggling to access basic necessities like food – shouldering an unsustainable burden. While energy companies are reaping massive profits, the economic fallout from the conflict has been largely overlooked.
Energy giants ExxonMobil and Chevron have reported their highest quarterly earnings in years, with profits reaching $14.5 billion and $12 billion, respectively. European energy companies such as TotalEnergies and Shell have also seen significant increases in earnings. However, behind these headlines lies a more sinister story: higher fuel prices have led to increased costs for fertilizers, essential for global food production.
Gerben Hieminga, an expert in energy markets at ING Research, notes that “The Gulf is important not only for oil and gas, but also for fertiliser and its feedstocks.” With farmers already facing significant challenges due to climate change, soil degradation, and water scarcity, the added pressure from higher fuel costs could be catastrophic. Rising food prices can push an additional 40 million people into hunger worldwide, according to the United Nations Food and Agriculture Organization (FAO). The poor and vulnerable are disproportionately affected by these price increases, as they often spend a significant portion of their income on basic necessities like food.
The US government is quietly ramping up its military spending, with estimated costs for the war reaching $37.5 billion – a figure that experts warn could balloon to over $1 trillion in the coming years. This staggering outlay comes at a time when many Americans are struggling to make ends meet, with rising income inequality and stagnant wages a pressing concern.
Defence firms like Lockheed Martin and Northrop Grumman have already seen significant increases in demand for their products, with contracts worth tens of billions of dollars being awarded since the start of the war. However, as the world becomes increasingly reliant on expensive and polluting energy sources, it’s crucial that we take a step back to assess the true cost of our actions.
The consequences of war are far-reaching and multifaceted, affecting not just those directly involved in combat but also the global food system, the environment, and local economies. As negotiations between world leaders continue, policymakers must prioritize sustainable solutions that address the root causes of hunger and inequality. This means investing in renewable energy sources, supporting small-scale farmers and local food systems, and working towards a more equitable global economy – one that prioritizes human well-being over corporate profits.
The war on Iran has already had far-reaching consequences, from disrupting global supply chains to exacerbating humanitarian crises. It’s imperative that we prioritize the needs of people over the interests of big business. The world’s hungry deserve better than to be left behind in the pursuit of profit.
Reader Views
- JHJess H. · thru-hiker
While the US-Israel war on Iran gets plenty of attention, its true cost is being felt far from the battlefield - in our grocery stores and dinner plates. The article highlights how energy companies are reaping massive profits while global food security suffers. What's missing from this analysis is an examination of the long-term consequences for local economies. As a thru-hiker who's experienced the impact of war on rural communities, I can attest that when farmers struggle to make ends meet, entire towns suffer.
- TTThe Trail Desk · editorial
The war drums are beating louder, but the drummers have lost sight of the economic orchestra's conductor – the vulnerable masses. As the US and Israel continue to wage their campaign against Iran, they're creating a perfect storm that will ravage global food security. While energy giants cash in on the chaos, we must remember that the true price of this conflict is not being calculated in dollars and cents, but in human lives. The FAO's estimate of 40 million more people pushed into hunger worldwide should be a stark warning to policymakers: war is not just about bullets and bombs, but also about bread and butter.
- MTMarko T. · expedition guide
The war on Iran's economy is a ticking time bomb for global food security. While energy giants are raking in record profits, farmers are facing unprecedented fertilizer costs due to higher fuel prices. The Gulf region supplies not just oil and gas but also the raw materials for fertilizers. What gets lost in this narrative is the role of alternative crop rotation methods that can actually reduce reliance on chemical-based fertilizers. We should be investing in sustainable farming practices, not just footing the bill for a costly war.