The United Nations refugee agency has warned that the ongoing conflict involving Iran is severely disrupting its supply chains, with freight rates rising sharply and delivery times lengthening. The crisis, which began with US and Israeli strikes on 28 February and subsequent Iranian retaliation targeting Gulf infrastructure and the Strait of Hormuz, is now having a direct impact on humanitarian operations across Africa and the wider region.
Speaking at a press conference in Geneva, UNHCR spokesperson Carlotta Wolf said that shipping costs from the agency's three main source countries for emergency supplies—India, Pakistan, and China—have increased by nearly 18%. “Every extra dollar spent on fuel and higher war-risk shipping insurance premiums is a dollar less that can be spent in the field,” she added.
The capacity of UNHCR's usual transport providers to respond to requests has dropped from 97% at the start of the year to 77%. To mitigate the disruption, the agency has rerouted sea cargo via Jordan's Aqaba Red Sea port and shifted to land corridors, including truck routes from Dubai across the Arabian Peninsula and Turkey.
Soaring Costs for African Operations
Wolf described the impact on Africa as “particularly worrisome.” In Kenya, where UNHCR maintains one of its seven global stockpiles, fuel price increases have triggered delays and reduced truck availability for shipments to Ethiopia, the Democratic Republic of Congo, and South Sudan. In Sudan, the cost of delivering aid has doubled in recent months, with rerouted shipments around the Cape of Good Hope adding up to 25 days to delivery times.
“For some shipments, costs have more than doubled, such as transport costs for relief items from UNHCR's global stockpiles in Dubai to our Sudan and Chad operations, which have increased from around $927,000 (€789,000) to $1.87 million (€1.59 million),” Wolf said.
The conflict has also placed a chokehold on the Strait of Hormuz, cutting off vast amounts of oil, gas, and fertiliser from the global economy. The United States has imposed a counterblockade on Iranian ports, further straining maritime trade. These disruptions are reverberating through European economies as well, with the Bank of England holding rates as oil prices hit a four-year high, and the EU accelerating its renewables and nuclear push in response to the energy crisis.
Long-Term Concerns for Humanitarian Operations
While UNHCR's global stockpiles are currently adequate, the agency is increasingly worried about the cost of restocking them. “If instability in the Middle East persists, rising costs, delays, and limited transport capacity are likely to constrain humanitarian operations further,” Wolf warned. “Prolonged disruption risks reducing the scale and speed at which assistance can reach people in need, with serious consequences for millions of refugees and displaced people worldwide.”
The agency requires $8.5 billion (€7.2 billion) for its operations this year, of which only 23% is currently funded. The added financial pressure from the conflict could exacerbate an already precarious funding situation.
The broader economic fallout from the Iran war is also affecting European travel and logistics. The Lufthansa Group has cut 20,000 flights due to soaring fuel costs, reshaping air travel across the continent. Meanwhile, the ECB has held rates at 2% as stagflation fears mount in the eurozone, highlighting the interconnected nature of the crisis.
Wolf concluded by emphasising that the humanitarian consequences are already being felt. “We are seeing a direct link between the conflict in the Middle East and the ability to deliver life-saving aid to refugees in Africa. Every delay, every extra cost, means someone waits longer for shelter, food, or medical care.”
