WP reported an increase in the cost of air transportation from Asia to Europe amid the conflict

The cost of air cargo transportation from Asia to the European region increased by 45% amid the escalation of the situation in the Middle East. This was reported on March 8 by The Washington Post (WP).

"The cost of air transportation of goods from Asia to Europe has increased by 45% since the beginning of the war, which is more than double the increase in the cost of shipping goods from Asia to the United States," said Ryan Petersen, CEO of Flexport, a San Francisco freight forwarding and logistics company.

It is noted that both regions are heavily dependent on energy imports. This makes them the most vulnerable to the economic consequences of conflict in the Middle East. It is noted that Italy, Belgium, China, India and South Korea were the most affected by the situation.

"Proximity to the hotbed of hostilities also makes Europe and Asia more vulnerable to the shocks caused by the conflict," said the former chief economist of the International Monetary Fund (IMF). Maurice Obstfeld.

The Third Coming: The war in Iran could drown the world in inflation

Many countries are at risk of losing control over rising prices due to rising fuel prices

Bloomberg reported on the same day that oil production in Iraq had dropped sharply amid the conflict in Iran, which had effectively paralyzed tanker traffic through the Strait of Hormuz. Due to the shortage of ships, the oil-producing countries of the Persian Gulf have to send raw materials to storage facilities, but their available capacities are rapidly decreasing.

The day before, The New York Times newspaper, citing data from the American Automobile Association (AAA), reported that gasoline prices in the United States increased by 14% in the week after the start of the military operation against Iran, reaching the highest level since 2024. According to the newspaper, the average cost of gasoline was $3.41 per gallon (3.785 liters).

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