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Following a reported 12-day escalation between Israel and Iran, culminating in mutual strikes, Donald Trump announced a "complete and total ceasefire," which he termed a "forever deal." This unexpected agreement aimed to de-escalate a conflict that had brought the Middle East to the brink. For Africa's economy, this deal carries significant implications, particularly concerning global oil prices, shipping routes, and investor sentiment. During the conflict, oil prices surged, creating temporary windfalls for African oil exporters like Nigeria but also exacerbating inflationary pressures on nations reliant on fuel imports. Disruptions to Red Sea shipping routes due to broader regional tensions, even if not directly caused by this specific conflict, have historically increased freight costs for Eastern African ports. The "forever deal," if truly stable, could bring a "greenlight" of reduced energy market volatility and more predictable global supply chains, benefiting African economies by lowering import costs and fostering investor confidence. However, a fragile peace could still lead to renewed instability, posing ongoing risks to trade, commodity prices, and overall economic stability across the continent
By Onyeka ValentineFollowing a reported 12-day escalation between Israel and Iran, culminating in mutual strikes, Donald Trump announced a "complete and total ceasefire," which he termed a "forever deal." This unexpected agreement aimed to de-escalate a conflict that had brought the Middle East to the brink. For Africa's economy, this deal carries significant implications, particularly concerning global oil prices, shipping routes, and investor sentiment. During the conflict, oil prices surged, creating temporary windfalls for African oil exporters like Nigeria but also exacerbating inflationary pressures on nations reliant on fuel imports. Disruptions to Red Sea shipping routes due to broader regional tensions, even if not directly caused by this specific conflict, have historically increased freight costs for Eastern African ports. The "forever deal," if truly stable, could bring a "greenlight" of reduced energy market volatility and more predictable global supply chains, benefiting African economies by lowering import costs and fostering investor confidence. However, a fragile peace could still lead to renewed instability, posing ongoing risks to trade, commodity prices, and overall economic stability across the continent