Subsidies, Stockpiles, and Shortages
Photo: AFP/Getty Images
Three months after the start of the Iran war, governments across the region are managing a widening humanitarian and economic crisis. This installment of Charting the Middle East spotlights regional government responses to the Iran war’s widening impacts. With trade through the Strait of Hormuz at a virtual halt and amid fears of supply chain disruptions, Gulf governments have introduced measures to safeguard domestic markets and businesses. Kuwait, for example, announced a temporary ban on the export of essential food items—including rice, cooking oil, and wheat flour—to prevent domestic shortages. Other Gulf nations, such as Qatar, which imports 90 percent of its food supply, have implemented food subsidies and restructured their supply chains. The government has flown in grains and fresh produce from Europe, Africa, and the Americas to ease shortages, limiting cost increases to 5–10 percent, rather than more significant price hikes.
In the Levant, the war has compounded already fragile economic and political conditions, prompting governments to mobilize emergency assistance, including cash aid, food support, and shelter for affected communities. Lebanon, where 20 percent of the population has been displaced due to the war, continues to face a deepening humanitarian crisis. The Integrated Food Security Phase Classification (IPC) predicts that 1.24 million people in Lebanon could face high levels of acute food insecurity between April and August 2026. Meanwhile, Egypt and Jordan have reported fuel and food cost inflation. In Egypt, authorities increased energy prices by 31 percent in April, citing the global energy crisis and budget burdens due to the war. In March, the Jordanian government was forced to pay an additional $200 million to import fuel, as it relies on imports for 95 percent of its domestic fuel consumption. Both countries have introduced subsidies and rationing measures to mitigate rising costs, though these interventions often fall short of meeting the needs of vulnerable groups.