Regional tensions strain global economy, fuel inflation concerns: business leader

CHINIOT, (APP - UrduPoint / Pakistan Point News - 3rd May, 2026) Prominent Pakistani businessman, industrialist and social activist Sheikh Qaiser Mahmood has said that ongoing tensions between the United States, Iran and Israel are placing severe pressure on the global economy, particularly in the middle East, and are fueling inflationary trends. He expressed this while exclusively talking to APP at his residence on Sunday.

He said the situation has significantly affected ordinary citizens, mainly due to disruptions in key trade routes such as the Strait of Hormuz, which have contributed to rising oil and gas prices in global markets. This, he added, has increased transportation, electricity and production costs worldwide.

He further noted that supply chain disruptions have led to higher prices of food and essential commodities, while Currency depreciation in several regional countries has reduced consumer purchasing power. The resulting economic slowdown, he said, has also impacted industrial and business activity, leading to rising unemployment and reduced growth.

Calling for a diplomatic solution, he stressed that lasting peace is essential for regional economic stability, adding that recovery of markets and control of inflation are directly linked to an end to ongoing geopolitical tensions.

APP/mha/378