Global tensions and conflict are disrupting oil supplies, drive up fuel prices
By: Martin B. Housanau
Ebeye, Marshall Islands
The Pacific region is once again being tested by forces beyond its control. The ongoing global tensions and conflict between the United States and Iran are disrupting oil supplies, driving up fuel prices, and fuelling inflation across the world.
Oil supply disruptions—particularly through the Strait of Hormuz—are already pushing up energy costs, transport expenses, and the price of basic goods globally.
For small island economies, this is not just an economic issue—it is a crisis of survival.
We, the Pacific people, cannot continue to absorb these shocks while remaining dependent on imports, external aid, and fragmented markets.
We urgently call on the Pacific Islands Forum to take decisive leadership in transforming Pacific economies—now.
A Call for Immediate Regional Economic Transformation.
Across Fiji, Solomon Islands, Tonga, Samoa, Kiribati, the Marshall Islands, and the wider Pacific, rising fuel costs are increasing:
1) Food prices.
2) Transport costs.
3) Electricity tariffs.
4) Cost of living for every household.
This is the direct consequence of global dependence on imported fuel and external supply chains. This must change.
We Urge the Pacific Islands Forum to Deliver Five Urgent Actions.
1. Build a Regional Production Economy.
Stop importing what we can produce.
Develop regional manufacturing and food processing industries to reduce dependence on costly imports.
2. Establish a Pacific Energy Independence Plan.
Invest jointly in renewable energy across the region:
– Solar, wind, and battery systems.
– Reduce reliance on imported fuel.
– Protect households from global oil shocks.
3. Create a Real Pacific Common Market.
Remove trade barriers and allow goods, services, and labour to move freely across the region—unlocking scale and opportunity.
4. Invest in Regional Transport and Supply Chains.
Establish reliable and affordable shipping and logistics systems to lower the cost of moving goods across islands.
5. Capture the Value of Pacific Resources.
No more exporting raw fish and resources.
Build regional industries that create jobs and retain wealth within Pacific communities.
The Reality We Must Face.
Global oil shocks and inflation are not temporary disruptions—they are becoming recurring features of the global economy.
If we do not act now, Pacific economies will remain:
- Vulnerable.
- Dependent.
- Unable to provide jobs and opportunities for our people.
The Way Forward.
The Pacific Islands Forum must move beyond dialogue and deliver action:
– Implement binding regional economic reforms.
– Coordinate investment and infrastructure.
– Drive true economic integration.
Final Message.
The Pacific cannot control global wars.
But we can control how we respond.
We must move:
– From import dependence → local production.
– From energy vulnerability → energy independence.
– From fragmentation → regional strength.
Our people deserve protection from global shocks, real economic opportunities, and a future built on resilience—not dependence.
The time for action is now.
– END
Photo credit: SBM Online
