Middle East conflict pushes Pacific islands toward energy crisis

Conflict in the Middle East risks pushing Pacific Island Countries into an energy crisis, with around 80% of their energy reliant on mostly imported oil products. A new analysis on the impact of the conflict on oil prices and Pacific Island economies, released today, estimates that Tonga's annual refined fuel import bill could rise by USD 55 million (9% of GDP). Fiji's annual refined fuel import bill could rise by USD 670 million, a 115% increase from 2025 levels, while Vanuatu's refined petroleum import costs could surge by USD 120 million (11% of GDP).