Israel-Iran conflict hammers Ghana’s daily bread and petrol tank

By Nana Karikari, Senior Global Affairs Correspondent

The escalating conflict between Israel and Iran, another titanic clash dominating headlines around the world, rings familiar in the homes and markets of Ghana. Far removed from the missile exchanges and diplomatic maneuvers, everyday Ghanaians are already starting to feel the impact of the strikes. This, turning sudden explosions very far away into real fears for their families and loved ones overseas, and concerns for their livelihoods back home. The Middle East war goes beyond geopolitics; it is about the price of kenkey and the cost of a tro-tro ride.

Ghana’s Fuel Fears Reach Every Pocket

For the majority of Ghanaians, the most immediate and stinging effect is being felt at the petrol station. President John Dramani Mahama has already instructed his Ministers of Energy and Finance to find ways of cushioning Ghanaians from the higher petroleum prices. The recent missile exchanges, he explained, “have started to escalate crude oil prices dramatically.” The new price increase risks reversing months of hard-won progress in lowering fuel prices, which had seen petrol and diesel hit below GH₵13 per litre in early June, down from GH₵16 in January.

When fuel prices go up, the cost of living becomes more expensive. From the prices of daily bus and taxi rides to the cost of transporting fresh produce from the farms to the markets in the city, everything takes a hard hit from the hike. Mama Akua, a market trader in Accra, expressed a widespread concern: “If petrol goes up again, my transport costs will consume all my profits. How will I feed my children then?”

This heartbreaking disconnect between where the aid is going and where the need is coming from is felt from coast to coast. It’s an equally powerful reminder that what happens in far-away, war-torn countries matters to people here at home. 

Some Industry experts, like Collins Adomako-Mensah, Deputy Ranking Member of Parliament’s Energy Committee, have cautioned that Ghana “could face tough times if Iran-Israel conflict deepens.” The government of Ghana has suspended a planned GH₵1 per litre fuel levy, a move that was widely seen as a clear indication of panic by the government, following these escalating tensions and rising crude oil prices.

Soaring operating costs—which have often more than doubled since the start of the pandemic—hit businesses hard. Transportation entrepreneurs like Kofi Mensah, a tro-tro driver with a fleet of tro-tros, lament: “Every cedi increase on petrol means we either raise fares, hurting passengers, or we cut into our meagre profits. It’s a lose-lose situation for us.” This directly impacts the livelihoods of thousands of drivers and conductors, and millions of daily commuters

Ghana’s main opposition New Patriotic Party (NPP) has also weighed in, with some critics condemning the timing of President Mahama’s remarks. A general sentiment by some Ghanaians online noted: “When you were in opposition, your voices were the loudest. You scorned every attempt by the then-government to attribute local economic challenges to global events… Today, we are living under your promises, and it is becoming increasingly clear that the reality does not match the rhetoric.” 

This captures a broader political culture where the fundamental question of who will take responsibility for stabilizing Ghana’s economy is always subject to contention.  A recent Pew survey identified the economy as the number one policy priority for average Ghanaians. It is always up for debate, even in the face of global disasters.

Dr. Kwasi Nyame-Baafi, a Senior Research Fellow at the Institute of Economic Research and Public Policy (IERPP), noted, “This artificial over-appreciation of the cedi is not sustainable. Forcing the Bank of Ghana to maintain an exchange rate of 10 cedis to the dollar is both expensive and an economically unwise decision. Let’s be honest: manipulating the exchange rate only delays the inevitable.” His comments highlight the underlying economic vulnerabilities that are revealed by external shocks.

A Nation’s Urgent Call to Protect Its Own

Along with the economic tremors, a deeper concern touches Ghanaian families: the safety and security of their fellow Ghanaians in the conflict zone. Foreign Affairs Minister Samuel Okudzeto Ablakwa announced the swift closure of Ghana’s embassy in Tehran. This proved to be an important move, as the Mahama administration decided to “immediately evacuate Ghanaians living in Iran following an escalation of the Israel-Iran conflict.”

This decision aims at protecting Ghanaian lives from hostilities that have already resulted in residential buildings being struck in Israel. Casualties are mounting. 24 Israelis have been killed since hostilities began. In Iran, 224 people have been killed thus far.

This evacuation through land borders includes Ghanaian diplomats, students, professionals, and other citizens. This brings a sense of enormous relief, but also anxiety for families in Ghana with hopes held.

“Each call is a blessing, to hear that they’re safe,” said a relative of a Ghanaian student in Tehran, who asked to remain anonymous. Ghana is keeping a close eye on the situation on the ground in Israel and Iran. It has ordered its embassy in Tel Aviv to scale back operations. Ghanaian authorities are urging their nationals in the battlegrounds to maintain close communication with consular offices.

For Ghanaian businesses, especially those that depend on imports or international trade, the war poses a double-edged sword. The anticipated increase in the cost of global shipping and potential disruptions to supply chains mean higher operational expenses.

A restaurant owner in Kumasi, already struggling with fluctuating food prices, said, “If the cost of ingredients from outside Ghana goes up because of this war, our local dishes will become too expensive for our customers. How do we survive?”

The conflict further poses threat to decreasing much-needed foreign direct investment (FDI) and portfolio inflows into other West African economies, like Ghana. This, as geopolitical instability, undermines confidence in investors. That could be a huge blow to job creation and economic growth. “We were hoping for more foreign partners, but this kind of global uncertainty just scares them away,” said Gyasiwa, a textile entrepreneur in Accra, expressing concerns over stunted expansion plans and potential job losses for young Ghanaians.

A Distant War, A Local Impact

The war, which has entered its sixth day as each side intensifies assaults against one another, is a disheartening example of the interconnectedness of today’s world. Though United States President Donald Trump at one point reportedly rejected an Israeli plan to assassinate Iran’s Supreme Leader Ayatollah Ali Khamenei, White House and Israeli officials are now saying that the operation would take “weeks, not days.” Trump has acknowledged potential US involvement.

With both sides widening their attacks, President Trump, on social media, warned Iranians to evacuate Tehran. Trump left the G7 summit early and he is back in the US “because of what’s going on in the Middle East,” the White House said.

Prime Minister Benjamin Netanyahu said he believes Israel’s strikes have significantly set back Iran’s nuclear program. “I estimate we are sending them back a very, very long time. I can’t elaborate,” he said in a news conference.

For Ghana, this deadly conflict is no longer just a news headline. It has direct bearing on the stability of everyday life, the price of food and gas, and the safety and security of its people overseas.

After hitting its lowest rate since the beginning of 2022 at 18.4% in May 2025, Ghana’s annual inflation rate is again under upward pressure. Increased transport and input costs may lead to rising food and utility prices, posing challenges to the Bank of Ghana’s 11.9% inflation target for year-end. Even the price of electricity and water bills might be going up, since a “prolonged conflict would result in elevated electricity and water tariffs, thereby increasing strain on households and inflation.” This translates into less disposable income for Ghanaian households and more difficult choices at the family dinner table. “It’s not just the petrol; it’s everything. While my salary stays the same, the cost of getting to work, sending my children to school, even buying simple provisions keeps rising every week. This war, so far away, feels like it’s emptying our pockets right here in Accra,” said Akosua Bemah, a primary school teacher in East Legon, highlighting the widespread frustration.

Ghana, which has long prided itself on being a stronghold of peace and non-alignment, continues to rattle with fear as it hopes for rapid de-escalation. The human cost, still hundreds of miles away from the frontline, is a tragic reminder that we need a diplomatic resolution to this conflict that benefits all parties, Ghanaians included. An urgent ceasefire will allow Ghanaians, and indeed all of us, to sleep a little easier without worrying about the cost of our daily meals and petrol bills being blown up.

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