Latest Energy Crisis Leaves Governments With Few Good Options

Rising energy prices tied to the American-Israeli conflict with Iran are triggering fresh unrest and economic strain across multiple regions. After oil hit $100 a barrel, protests erupted in Guatemala and Syria, including burning tires and cars. In Portugal, diesel reached a record high of more than $9 per gallon, with drivers crawling in protest and honking. In Asia’s developing economies—often dependent on Middle Eastern energy and burdened by earlier war-related costs—fuel shortages, pump lines, and protests by taxi drivers and laborers are slowing activity. Governments face a hard tradeoff between absorbing costs to curb inflation or expanding subsidies that raise debt and pressure currencies.