Prime minister instructs action to deal with inflationary impact due to Israeli war on Gaza, escalation in Red Sea

AMMAN — Prime Minister Bisher Khasawneh on Sunday instructed all relevant ministries and stakeholders to take necessary measures to deal with the possible inflationary impacts on the local market as a result of the ongoing Israeli aggression on Gaza and the prevailing situation in the Red Sea.

During a Cabinet session, Khasawneh said that 15 per cent of the international trade goes through the Bab Al Mandab Strait, and the Israeli war on Gaza resulted in regional developments that some transport companies consider a threat to their navigation, the Jordan News Agency, Petra, reported.

According to recent estimations made by the Ministry of Industry and Trade, shipping costs were increased by 160 to 170 per cent for shipments coming from Southeast Asia and increased by 60 to 100 per cent for shipments coming from North America and Europe.

"Such conditions will cause inflationary impact especially because commercial sectors are seeking profit, and will therefore reflect costs to profit margins," Khasawneh said.

He emphasised that the government might have some means to limit such inflationary impacts via adopting procedures similar to those applied during the COVID-19 pandemic, such as setting customs ceilings on the value of inbound containers.

Khasawneh also noted that the Jordanian Armed Forces-Arab Army (JAF) has pledged to provide basic commodities at the Military Service Consumer Corporation at their current prices.

He also called on the Minister of Industry and Trade to tighten monitoring tools on markets and maintain safe strategic reserves of wheat, barley and all other basic goods.