Cost-of-living crisis is getting worse. Peace in Middle East is an imperative

6 October 2024

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The escalating conflict in the Middle East poses a significant threat to global stability, with rising oil prices compounding the economic challenges facing many nations, including India. With its heavy reliance on oil imports—over 85% of its oil needs are met through imports—India finds itself precariously positioned amidst the chaos. The situation is exacerbated by the high cost of living crisis already affecting millions across the world and in the country, and any further spike in oil prices could lead to inflationary pressures that are unsustainable.

In light of these circumstances, the international community must urgently prioritize de-escalation and mediation efforts in the Middle East. An immediate ceasefire in Gaza and Lebanon is critical. The recent hostilities have already resulted in a tragic loss of life and have displaced countless individuals, further straining humanitarian resources in a region already facing significant challenges. Additionally, the ongoing conflict threatens to draw in neighboring countries, risking a wider war that could have global repercussions.

Moreover, the reopening of the Red Sea for global shipping is paramount. This vital waterway serves as a key artery for international trade, including the transportation of oil. A stable shipping route not only ensures the continued flow of goods but also helps stabilize oil prices, providing some relief to countries like India. A blockade or conflict that disrupts shipping lanes will inevitably lead to increased costs that will be felt by consumers everywhere, including in Indian markets.

Jammu & Kashmir, a state that significantly contributes to the country’s agricultural sector—especially the fruit industry—is also at risk. With unreliable road transport connectivity, the region is particularly vulnerable to supply chain disruptions triggered by a larger conflict in the Middle East. The prospect of war not only jeopardizes the livelihoods of local farmers but could also affect the nation’s overall economic wellbeing.

An immediate ceasefire in both Gaza and Lebanon is a humanitarian imperative. The return of Israeli hostages is another humanitarian issue that needs addressing. It is crucial for all parties involve to priortise peaceful dialogue to escalation. Humanitarian corridors must be established to allow for aid to reach those in need in Gaza and Lebanon without further escalation of violence.

The onus is on world leaders and organizations to come together, employing diplomacy and dialogue. The United Nations and regional powers must play an active role in facilitating talks between the involved parties. As the conflict escalates, the costs of inaction will rise, not just in terms of human life, but also in economic fallout that will affect countries far beyond the immediate region.

The call for peace is not merely an ethical stance; it is an economic necessity. Only through de-escalation, mediation, and a collective commitment to dialogue can we hope to contain the unbearable costs of living that threaten to engulf nations like India. The world must act now to promote an environment of peace, ensuring that the tragedies of war do not dictate the economic futures of millions of people and their dreams and aspirations.