Government Eyeing Oil Prices Amid Missile Attacks In The Middle East

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NASSAU, BAHAMAS – The government is keeping an eye on oil prices following the ongoing war in the Middle East, according to Economic Affairs Minister, Michael Halkitis.

The United States launched a surprise attack Sunday morning on three Iranian nuclear sites, and today, Iran retaliated with a missile attack on a U.S. military base in Qatar. Still, international reports say there were no casualties reported.

With The Bahamas being heavily dependent on imports, Halkitis says the hope is that the ongoing tension ends sooner rather than later.

Michael Halkitis – Minister, Economic Affairs
“One of the first things that I did when I heard about the escalation and the conflict was look at the oil prices and see what the impact has been. They have trended up, they haven’t spiked up, and so we are hopeful that there can be a resolution and that the conflict doesn’t spread to the wider region and impact oil supplies.”

Wars often lead to closure or destruction of key trade routes, making it difficult and expensive to trade goods. This can eventually end in a shortage of essential goods and increase costs for businesses.

While it’s unclear if trade routes have been impacted, international experts warn of the possible impact. The Economic Affairs Minister telling us talks of this have begun swirling.

Michael Halkitis – Minister, Economic Affairs
“There are rumors about, for example, the closing of certain shipping lanes, again, we are hopeful that this doesn’t happen because any increase in oil prices immediately we feel at the pump. BPL will feel it, in terms of their supply of fuel, and that tends to get passed on to the consumer.”

The harsh possibilities come as Bahamians are already facing rising costs and an overall increase in the cost of living.

While the government searches for ways to ease the burden on the backs of Bahamians with new trade routes and tax cuts, external factors make efforts difficult.

Despite the bad news, Halkitis says there’s no need to panic.

Michael Halkitis – Minister, Economic Affairs
“Every once and a while, you have these flare-ups that can cause some disruptions. I think we monitor the developments, and we do as much as we can to conserve our consumption, and like I said in my presentation today on the budget, this really brings home even more the importance and the urgency of us to move to more renewable sources of energy.”