Prime Minister Gaston Browne is warning that escalating Middle East tensions and the closure of the Strait of Hormuz could drive global oil prices higher, placing renewed financial pressure on Antigua and Barbuda. According to Antigua.news, Browne raised the alarm on Saturday as developments in the region threatened to reverse recent gains for consumers.
Iran closed the Strait of Hormuz, citing Israeli "violations" of a peace deal agreed with the United States. The Iranian military command described the closure as the "first step" in response to what it characterized as breaches of the ceasefire agreement, warning that further measures would follow if "aggression" continued, according to state media.
Browne said his ABLP administration had welcomed recent declines in oil prices and was hopeful that consumers would soon see financial relief. Those expectations have now been thrown into doubt.
"Yesterday we were happy because oil prices had come down and we thought we were finally going to get some relief. Lo and behold, the Strait of Hormuz is now closed and oil prices are likely to increase again," Browne said.
The Prime Minister noted that Antigua and Barbuda remains highly vulnerable to international economic shocks due to its dependence on imported fuel and limited domestic resources. He stressed that global events beyond the country's control frequently carry significant consequences for small island developing states.
Browne said the latest developments strengthen his government's case for the Multidimensional Vulnerability Index (MVI), a framework designed to better reflect the unique vulnerabilities faced by small nations. He argued that despite being classified as middle-income countries, states like Antigua and Barbuda continue to bear a disproportionate burden from external shocks including wars, hurricanes and supply chain disruptions.
"We have a small population, limited resources and yet we have to absorb these kinds of shocks repeatedly. It is extremely difficult to run a small vulnerable country under those circumstances," he said.
The Prime Minister expressed hope that regional tensions will ease and that global oil prices will return to more stable levels.
