The World Trade Organization (WTO) has warned of a potential increase in fuel prices should the conflict in the Middle East continue.
According to WTO Director-General Ngozi Okonjo-Iweala, many countries that rely on fuel imports could be faced with a spike in prices of energy products.
Kenya is one of the countries that relies on imports from oil-producing countries.
The DG added that the organisation was monitoring the conflict keenly including the side effects that could be felt across the globe.
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"We are expecting a gradual recovery in global trade for 2024, but we remain vigilant of potential setbacks, particularly the potential escalation of regional conflicts like those in the Middle East," she stated.
"The impact could be most severe for the countries directly involved, but they may also indirectly affect global energy costs and shipping routes. Beyond the economic implications, we are deeply concerned about the humanitarian consequences for those affected by these conflicts."
In recent days, there has been growing tension in the Middle East following the missile attacks in Israel and the anticipated retaliatory attacks.
Should the conflict escalate further, Kenyans could feel the pinch after months of stabilised pump prices.
Currently, Super Petrol retails at Ksh188.84, Diesel at Ksh171.60 and Kerosene is sold at Ksh158.32 per litre.
Therefore, an increase could see the cost of living increase as transportation of goods also becomes expensive for traders.
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