DILI, 05 March 2026 (TATOLI) – President José Ramos-Horta has warned that escalating tensions in the Middle East could indirectly affect Timor-Leste’s economy, recalling how the war between Russia and Ukraine previously drove up food prices in the country.
The president made the remarks on Thursday on the sidelines of the swearing-in ceremony of the new Vice Minister for Foreign Affairs and Cooperation, Jesuína Gomes, at the Presidential Palace in Dili.
Although the conflict is taking place far from Timor-Leste, Ramos-Horta said the country could still feel the consequences because of the vulnerability of the global economy.
“The impact could reach Timor-Leste because the global economy is highly interconnected and vulnerable,” he said.
As an example, the president recalled that before the Russia–Ukraine war, a 25-kilogram bag of rice cost about $11, but the price later rose to around $18 due to disruptions in global supply chains.
Ramos-Horta also warned that a potential blockade of the Strait of Hormuz by Iran could disrupt global oil shipments, leading to higher energy prices and affecting international markets. “If oil cannot circulate normally, it will have a global impact,” he said.
When, asked about measures the government could take to mitigate possible economic effects, the president said that if the situation worsens, one option would be to mobilize funds from the country’s sovereign wealth fund to ensure the import of essential food items and prevent excessive price increases in the domestic market.
Ramos-Horta also warned that a possible depreciation of the United States dollar could further worsen the situation by making imports more expensive.
“If the dollar weakens because of the conflict, the goods we import could become even more costly,” he said.
The president acknowledged that no country is immune to the consequences of a conflict of such scale and stressed the need to closely monitor developments in the coming weeks.
He added that the government must remain vigilant, particularly regarding the potential impact on the most vulnerable segments of the population, and consider preventive measures to protect low-income households.
Tensions in the Middle East escalated after the United States and Israel launched attacks against Iran on February 28.
In retaliation, Iranian authorities reportedly carried out strikes not only against Israel but also against U.S. military bases in several allied countries in the region. Local media reports say more than 1,000 people have been killed in Iran since Saturday.
Journalist: Camilio de Sousa
Editor: Filomeno Martins
