Prime Minister Gaston Browne is warning that escalating tensions in the Middle East and the reported closure of the Strait of Hormuz could once again drive up global oil prices and place additional financial pressure on Antigua and Barbuda.

Iran has closed the Strait of Hormuz once again over Israeli “violations” of the peace deal agreed with the US, Tehran’s military has said.

The Iranian military command ‌said the closure was the “first ‌step” in response to what it described as breaches of the ceasefire agreement, warning that further measures would ‌be taken if “aggression” continued, according to state media.

He said on Saturday that his ABLP administration had been encouraged by recent declines in oil prices and was hopeful that consumers would soon see relief.

However, developments in the Middle East have cast uncertainty over those expectations.

“Yesterday we were happy because oil prices had come down and we thought we were finally going to get some relief. Lo and behold, the Strait of Hormuz is now closed and oil prices are likely to increase again,” Browne said.

The Prime Minister noted that Antigua and Barbuda remains highly vulnerable to international economic shocks because of its dependence on imported fuel and limited domestic resources.

He said global events beyond the country’s control often have significant consequences for small island developing states.

Browne said the latest developments reinforce his government’s advocacy for the Multidimensional Vulnerability Index (MVI), which seeks to better account for the unique vulnerabilities faced by small states.

He explained that despite being classified as middle-income countries, nations like Antigua and Barbuda continue to suffer disproportionately from external shocks such as wars, hurricanes and supply chain disruptions.

“We have a small population, limited resources and yet we have to absorb these kinds of shocks repeatedly. It is extremely difficult to run a small vulnerable country under those circumstances,” he said.

The Prime Minister expressed hope that tensions in the region will ease and that global oil prices will eventually return to more stable levels.