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Prime Minister Abiy Ahmed Says Ethiopia Faces Oil Supply Challenges Amid Middle East Crisis

StockMarket.et by StockMarket.et
March 16, 2026
in Finance
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Prime Minister Abiy Ahmed Says Ethiopia Faces Oil Supply Challenges Amid Middle East Crisis
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Prime Minister Abiy Ahmed (PhD) announced that Ethiopia, along with several other oil‑importing countries, is struggling to secure petroleum supplies on time due to the ongoing crisis in the Middle East.

In remarks on Saturday, Dr. Abiy said the conflict has disrupted global oil shipments and stressed that urgent measures are needed to conserve fuel and prioritize essential services. “Until the problem is resolved and we return to a normal oil supply system, we must use oil sparingly and prioritize basic needs,” the Prime Minister said.

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He also urged oil distributors, station operators, and consumers across the country to practice responsible energy use and reduce unnecessary consumption.

He added that the government is closely monitoring the situation and exploring strategies to mitigate the impact of supply interruptions on transport, agriculture, industrial activity, and public services.

The announcement from Ethiopia comes as the Middle East conflict, particularly involving Iran, the United States, and Israel, has severely disrupted global energy markets. One of the world’s most vital oil transit routes, the Strait of Hormuz, which normally carries about 20% of global crude and liquefied natural gas (LNG) shipments, has seen nearly a complete halt of tanker traffic due to ongoing hostilities.

According to the International Energy Agency (IEA), these developments are forecast to trigger the largest oil supply disruption in history, with global output expected to drop by millions of barrels per day if shipping through the strait does not resume.

Countries such as Saudi Arabia, Kuwait, Iraq, the UAE, and Qatar have already cut production, contributing to tightening supplies and price volatility.

Efforts by major energy‑importing nations to stabilize markets have included a historic release of 400 million barrels of oil from emergency reserves coordinated by the IEA, the largest such action on record, though analysts warn this may offer only temporary relief if disruption persists.

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