Oil Price Shock Prevents Aid for 1.5 Million Children

The international NGO Save the Children reports that an oil price shock triggered by conflict between the United States and Iran has cost the organization $13 million in additional delivery expenses. These rising costs for fuel, transport, and food have prevented the charity from reaching 1.5 million children globally.

The price surge began when Iran restricted supplies through the strait of Hormuz, driving oil prices from an expected $60 per barrel in 2026 to over $100. Although prices dipped during a summer ceasefire, they recently climbed back above $90 as hostilities resumed and the U.S. administration threatened increased economic sanctions. The International Energy Agency characterized the event as the largest supply disruption in history.

These operational challenges coincide with a 23% plunge in real-term global aid spending, according to the Organisation for Economic Co-operation and Development. This decline includes significant budget cuts to the United States Agency for International Development under the Trump administration and reductions by the United Kingdom government.