Oil Prices Surge Due to U.S.-Iran War, Myanmar's April Inflation Nears 25%

U.S.-Iran War: Key News Highlights

Central News Report

(Yangon, 16th - CNA International Wire) The World Bank announced today that the closure of the Strait of Hormuz has caused international oil prices to surge, leading Myanmar's year-on-year inflation rate to reach nearly 25% in April. The bank has also revised its annual economic growth forecast for Myanmar down to 2%, citing "increasingly adverse external conditions."

Myanmar has been embroiled in civil war since the military seized power in 2021, resulting in social unrest and leaving many citizens in extreme poverty.

Official data shows that 90% of Myanmar's fuel supply depends on imports. Since the outbreak of the U.S.-Iran war in late February, which led to the blockade of the Strait of Hormuz, Myanmar has been severely affected.

The World Bank's "Myanmar Economic Monitor" report states that inflation in Myanmar surged to 24.6% year-on-year in April. The report also downgrades Myanmar's economic growth projection for the 2026-2027 fiscal year from 3% to 2%.

The World Bank noted that Myanmar's economy was "stabilizing at a low level," but "a new shock from fuel prices has exacerbated long-standing structural weaknesses, making the outlook highly vulnerable to disruptions."

Kemoh Mansaray, Senior Economist at the World Bank, told media: "This fuel shock has reignited inflationary pressures."

"This means declining household purchasing power, among families already struggling with extreme poverty."

The 12-month inflation rate, as of the end of March, stood at 21.1%.

The World Bank report also highlights that poverty rates in 2025 are projected to reach 29.9%, "still far above pre-2021 levels."

A 28-year-old man in Yangon said in an interview: "We now have trouble even affording meals, let alone sending our children to school."

Another resident said: "Prices only go up, never down. No matter how much we earn, it's never enough."

The International Energy Agency (IEA) pointed out that the closure of the Strait of Hormuz has a particularly severe impact on Asia, as 80% of the oil passing through the strait is destined for Asian markets. (Compiled by: Chi-Chin Ling) 1150616

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