Levent Gürses
The economic crisis that has persisted since 2018, the lockdowns and economic standstill experienced during the pandemic, the hardships brought about by the war in Ukraine, and now the war with Iran… Over the last few years, the plight of workers, wage earners, students and business owners has been worse than that of a roasted chicken. The war launched by the rogue states, the US and Israel, against Iran—which has now lasted over a month—is perhaps the most brutal yet… Because energy—specifically oil and natural gas—is the lifeblood of the global economy. Furthermore, there are shortages in raw materials such as fertilisers, plastics and helium, which are by-products of oil.
Just last week, whilst expectations were mounting that ‘the war would end and the US would declare a ceasefire’, and US President Donald Trump had stated that they were ‘engaged in very good and productive dialogue with Iran’, the exact opposite occurred. Trump, whose actions are unpredictable and whose word cannot be trusted – and whom French President Emmanuel Macron has described as someone “we perhaps shouldn’t speak to every day” – stated in his first “Address to the Nation” since the start of the conflict that the US would continue to strike Iran, declaring: “Over the next two or three weeks, we will strike them extremely hard. We will send them back to where they belong, to the Stone Age.”
Promise of further attacks on energy facilities sent oil prices soaring
The US President promised further attacks on energy facilities should no agreement be reached with Tehran. Trump also said the US would “finish the job” in Iran, that “core strategic objectives are nearing completion” and that military operations could end shortly.
These remarks sent the markets into turmoil once again. Oil rose, stock markets fell, and gold lost value. Brent crude, which had fallen below $100 a barrel on optimistic expectations, rose to $109 on the morning of Friday 3 April, whilst West Texas Intermediate crude, having fallen to $98 a barrel, rose by 11 per cent to $112, its highest level in four years. Gold prices, which had approached $4,800 per ounce, fell by 2.3 per cent on Thursday to $4,675.
The war shows no sign of ending; on the contrary, it looks set to intensify for at least a while longer, with attacks on Iran’s energy facilities expected, Iran likely to retaliate against facilities in the Gulf, and the Strait of Hormuz appearing set to remain closed.
March inflation: 1.9%, annual: 30.87%
All of this is creating a nightmare scenario, particularly for energy-importing countries like Turkey. Indeed, the latest evidence came in the form of the inflation figures announced on the morning of Friday, 3 April.
According to the Turkish Statistical Institute (TÜİK), monthly inflation rose by 1.94 per cent and annual inflation by 30.87 per cent in March. The three-month inflation rate for 2026 stood at 9.74 per cent. The monthly increase in food prices was measured at 1.80 per cent, whilst the rise in transport costs was 4.52 per cent.
ENAG, meanwhile, reported March inflation at 4.10 per cent and annual inflation at 54.62 per cent.
Prof. Dr. Şenol Babuşçu said, “Even if the war ends soon, it is impossible for year-end inflation to fall below 25 per cent. If the war drags on, even the 2025 inflation target may not be achievable.”
As the world heads towards stagflation, the source of all problems is the Strait of Hormuz
The world is entering a very tough period economically. Even if the war in Iran ends in April, its effects will persist for a long time. It will take time for the damaged oil and gas facilities in the Gulf region to return to their former state. A return of oil prices to the pre-war level of $70 per barrel seems like a distant dream for the time being.
The global economy faces a “stagflation period” characterised by rising inflation and slowing economic growth.
The primary cause of the current difficulties has been Iran’s closure of the Strait of Hormuz, its most potent strategic asset. This critical strait, through which approximately 20 per cent of the world’s oil and liquefied natural gas (LNG) passes, has been closed since 3 March. Whilst an average of 138 commercial vessels—56 of which were liquid fuel tankers—passed through daily before the war (28 February), this figure dropped to an average of 6–7 per day in March.
According to an analysis featured on BBC Turkish, this oil flow originates not only from Iran but also from other Gulf countries such as Iraq, Kuwait, Qatar, Saudi Arabia and the UAE. Furthermore, approximately 20 per cent of global LNG is transported through the strait, mostly from Qatar.
The Strait of Hormuz is also a critical route for fertiliser exports from the Middle East; natural gas is used extensively in fertiliser production in the region. Around one-third of the world’s fertiliser trade normally passes through this strait. In the opposite direction, the Strait serves as a vital channel for the import of food, medicines and technological materials into the Middle East.
The US and Iran cannot agree on the Strait of Hormuz
Asian economies, which are heavily reliant on imported oil from the Gulf region, have been hit hard. China purchases approximately 90 per cent of the oil Iran sells on the global market. As China uses this oil to manufacture goods and exports these goods to other countries, rising oil prices could mean higher prices for global consumers.
For these reasons, the Strait of Hormuz is a crucial chokepoint and a critical element in ceasefire talks; US negotiators argued in their 15-point plan to end the war that Iran must reopen the Strait of Hormuz as a precondition. However, the Iranian side stated that the country is not conducting negotiations to end the war with the US and has “no intention” of doing so.
A very important joint statement from the IMF, the World Bank and the Energy Agency
Before addressing the issues arising from the war and the Strait of Hormuz that could lead to reduced food production and hunger, let us draw attention to a very important joint statement. The heads of the International Energy Agency (IEA), the International Monetary Fund (IMF) and the World Bank Group have established a coordination group to maximise their institutions’ intervention against the effects of the war in the Middle East on energy and the economy. The heads of these organisations issued the following joint statement:
“The war in the Middle East has severely disrupted lives and livelihoods in the region and triggered one of the largest supply shocks in the history of the global energy market. Its impact is significant, global and highly asymmetric; it is disproportionately affecting energy importers, particularly low-income countries. This impact is already being felt through rising prices for oil, gas and fertilisers, and is fuelling concerns regarding food prices. Global supply chains, including those for helium, phosphate, aluminium and other commodities, are being affected; similarly, tourism is being impacted due to flight disruptions at major airports in the Gulf. The resulting market volatility, coupled with concerns over currency depreciation in emerging economies and inflation expectations, is increasing the likelihood of tighter monetary policy and weaker growth.”
Coordinated and effective support for countries in need
The statement continues as follows:
“In this period of high uncertainty, it is vital that our institutions pool their resources to monitor developments, align their analyses, and coordinate the support provided to policymakers to help them navigate this crisis. This applies in particular to countries most exposed to the indirect effects of the war, as well as those with more limited policy space and higher debt levels. To ensure a coordinated response, we have reached a joint agreement to establish a group that will undertake the following tasks:
To assess the severity of impacts across countries and regions through coordinated data sharing on energy markets and prices, trade flows, pressures on fiscal and balance of payments balances, inflation trends, export restrictions on key commodities, and supply chain disruptions.
To coordinate an intervention mechanism that may include: targeted policy recommendations, the assessment of potential financing needs and, consequently, the provision of financial support (including concessional financing), and the use of risk mitigation tools where appropriate. Mobilising relevant stakeholders, including other multilateral, regional and bilateral partners, to provide coordinated and effective support to countries in need.”
The threat of famine in African countries and in Gaza and Lebanon
We have spoken of hunger; Prof. Dr. Hayri Kozanoğlu, a columnist for Birgün newspaper, states: “In African countries such as Kenya, Somalia, Tanzania and Sudan, which import fertiliser by sea, as well as in Gaza and Lebanon, which are under Israeli attack, high food prices are leading to dire consequences and direct hunger,” and provides the following information:
“One-third of the world’s seaborne fertiliser trade, amounting to 16 million tonnes, passes through the Strait of Hormuz. Iran, Qatar, Saudi Arabia and Oman are the leading exporters of nitrogen-based urea and ammonia. According to the UN Food and Agriculture Organisation (FAO), 30–35 per cent of global urea exports and 20–30 per cent of ammonia exports originate from the Persian Gulf. Unlike oil, there is no internationally coordinated strategic reserve in the fertiliser sector. Due to the large volumes involved and financing costs, stocks are very low, particularly in poorer countries. Some countries are heavily reliant on the Strait of Hormuz for their fertiliser supply. For Sudan, this figure reaches 54 per cent. Other dependent countries include Sri Lanka (36 per cent), Australia (32 per cent), Tanzania (31 per cent), Somalia (30 per cent), Pakistan (27 per cent), Thailand (27 per cent) and Kenya (26 per cent). Fertiliser imports from the region are also of great importance to other South Asian countries, particularly India and Bangladesh.
Food prices, which are already high, are expected to rise sharply
In modern agriculture, three inputs are used to increase yields: nitrogen, phosphorus and potassium. Nitrogen-based ammonia and urea are produced from natural gas. Phosphorus, meanwhile, is derived from sulphur, a by-product of petroleum. Furthermore, as fertiliser factories consume large amounts of energy, costs may rise, and governments may impose restrictions on energy allocation, as has already been observed in Algeria and India. It is reported that production has been halted at four of the five state-owned fertiliser factories in Bangladesh. Pakistan is also facing major difficulties.
According to research by Peter Alexander of the University of Edinburgh, a rise in fertiliser prices from $300–350 to $900–1,000 per tonne could push global food prices up by between 60 and 100 per cent.
Although these countries have food stocks sufficient for a few months, they will suffer significant losses due to supply difficulties and high prices should the war drag on. Iran also meets its requirements for wheat, maize, rice and cooking oil through imports. ‘The war’s economic impacts—both direct and, in particular, those stemming from devaluation—could cause already high food prices to rise exponentially, making it likely that the public will face a major food crisis.’
FAO warns: A worrying scenario for food prices
The United Nations (UN) Food and Agriculture Organisation (FAO) has warned that the conflicts triggered by US and Israeli attacks on Iran have caused severe disruptions to global commodity flows, and that even if the fighting were to cease today, it could take 2–3 months for costs to stabilise. FAO Chief Economist Maximo Torero provided information to journalists via an online link to the UN Headquarters in New York.
Torero stated regarding the US and Israeli attacks on Iran: ‘Even if the conflict were to end today, this means it could take 2–3 months for costs to stabilise.’ Torero noted that if the conflict were to end within a week or two, he believed markets could absorb this within approximately three months; however, he added that if the conflict were to continue, its impact on global food and energy supplies would intensify further.
Even if the war ends, nothing will be the same as before
The question on everyone’s lips is: if the war were to end by the end of April under an optimistic scenario, would everything return to normal, or when would it? It is a difficult question to answer with a simple “yes”… Because there is significant damage to both Iran’s and the Gulf countries’ oil and gas infrastructure.
The US and Israel bombed the South Pars region, which produces approximately 75 per cent of all the gas Iran uses; facilities responsible for 12 per cent of Iran’s total gas production were struck.
Iran’s South Pars and Qatar’s North Field are, in fact, the same vast gas reservoir separated by an international border running through the Persian Gulf. Of course, they extract gas separately, but physically they are a single source and are located right next to the Strait of Hormuz. For Iran, South Pars forms the backbone of everything from energy and petrochemicals to domestic heating.
There has been extensive damage in Saudi Arabia and Qatar
Iran’s response was to target the Gulf’s energy infrastructure. Missiles and drones struck numerous locations, including Qatar’s Ras Laffan industrial complex (the world’s largest LNG export hub) as well as refineries and petrochemical plants in Saudi Arabia and other Gulf countries. QatarEnergy CEO Saad al-Kaabi described the damage at Ras Laffan as ‘extensive’ and ‘significant’. According to some experts, the necessary repairs will take years, not weeks.
Qatar confirmed that two of its 14 LNG processing units and one of its two gas-to-liquids facilities had been hit, resulting in an estimated halt to 12.8 million tonnes of LNG production per year for the next 3–5 years. This translates to an estimated revenue loss of approximately $20 billion this year, $26 billion in damaged equipment, and the fact that production at these units will not resume whilst the missile attacks continue. Ras Laffan accounts for approximately one-fifth of all globally traded LNG. It is not just about natural gas; Ras Laffan supplies the production of key raw materials: condensates, liquefied petroleum gas, naphtha, sulphur and helium.
In early March, Saudi Arabia’s Ras Tanura facilities, with a capacity of 550,000 barrels per day, sustained significant damage. Assuming no further attacks, repairs are expected to take at least 8–12 weeks.
Under the most optimistic scenario, full capacity will not be restored until mid-June
Commodities market expert Giacomo Prandelli summarises the best-case scenario should the Strait of Hormuz reopen in May as follows:
15–20 May: Security checks, equipment inspections
20–27 May: Gradual resumption of production
1 June: Partial production at 30–40% capacity
15 June: Approaching normal levels
Mid-to-late June: Full capacity.
How has the war affected importing countries?
Let me continue with some examples of how the war and the oil supply shock have affected importing countries:
Japan: It was one of the world’s largest LNG importers; now it has switched back to coal. It has lifted restrictions on the operation of coal-fired power stations for a year.
India: Due to the LPG crisis, Indians have started queuing for gas cylinders to cook. Restaurants, hotels and cafés are opening less frequently or serving smaller portions. Crematoriums have been temporarily closed.
Vietnam: It has asked its citizens to work from home; ‘sold out’ signs are being put up at petrol stations.
Pakistan: Has announced austerity measures; schools will be closed and spending cut, with reductions in civil servant salaries.
Bangladesh: Is distributing fuel by imposing a limit on the amount that can be filled into each vehicle.
Sri Lanka: Private vehicle owners can only purchase 15 litres of petrol per week via a QR code-based system.
Cambodia: A third of petrol stations have closed.
Myanmar: An ‘odd-even’ restriction system based on vehicle registration numbers is in place.
New Zealand: The ‘Car-Free Days’ scheme is to be relaunched. Drivers choose which day they will not use their vehicle.
Slovenia: It became the first European Union (EU) country to implement fuel restrictions. Private vehicle drivers’ weekly purchase is limited to 50 litres.
Germany: A law has been passed allowing petrol stations to increase prices only once a day.
In Turkey, fuel prices are being raised continuously
So far we’ve been talking about the rest of the world; we haven’t quite got round to Turkey yet. If you’re wondering what’s happening: Turkey, which imports most of its energy from Russia, currently has no supply issues. However, fuel prices are being raised continuously. The Central Bank is selling reserves intensively to prevent an increase in exchange rates. There is a fertiliser shortage, and the agricultural sector is struggling. There is a shortage of plastic raw materials.
The government is attempting to limit price rises by waiving a significant portion of excise duty revenue through the escalator system; however, it is noted that the system’s effectiveness will remain limited if oil prices continue to rise, a point also emphasised by the economic management.
Prior to the Iran conflict, diesel prices in Turkey were around 60 TL. As of 1 April, the total price increase for diesel has exceeded 17 TL. The price per litre of petrol, which stood at around 58 TL in Istanbul at the end of February, is now over 62.5 TL.
A major price hike has been implemented for LPG
As of Thursday, 2 April 2026, a price hike of 4 TL 50 kuruş per litre was applied to LPG, a fuel product. As of Thursday, 2 April, the price per litre of LPG in the European side of Istanbul rose to 34.99 TL; petrol is sold at 62.60 TL per litre, and diesel at 77.47 TL per litre.
Price increases for diesel and petrol came into effect on Wednesday, 1 April. The price per litre of diesel was increased by 2 TL 57 kuruş.
Yavuzyılmaz: VAT on fuel should be reduced to 1 percent
CHP Deputy Chairman Deniz Yavuzyılmaz stated, “My fourth appeal to President Tayyip Erdoğan. The pump price of diesel continues to soar. Following the price hike effective 1 April 2026, the current pump price for one litre of diesel has risen to 77.40 lira. The VAT on fuel must be reduced to 1 per cent immediately, either by a decision of the President or Parliament. Otherwise, all global price increases will be directly reflected in pump prices,” he said.
Trump must have foreseen these developments, the 20-year LNG agreement
There is also this: Trump must have foreseen all these developments, so there is no need to calculate their potential impact on Turkey in the coming years. This is because, under the 20-year, $43 billion agreement signed between Turkey and the US in September 2025, LNG (liquefied natural gas) will be shipped from the US to Turkey from 2026 until the end of 2045. Under the agreement, the liquefied gas will be collected from US ports and delivered to regasification terminals in Turkey, Europe or North Africa. In short, the potential effects of this period on Turkey were also calculated and incorporated into the contract back in September 2025.
Significant decline in Central Bank reserves
Central Bank reserves are experiencing a historic decline. In the week ending 27 March, total reserves fell by a full 22.1 billion dollars to 155.3 billion dollars. This brings the total decline over the past month to 55 billion dollars. In the week of 27 March, foreign exchange reserves fell by 6 billion dollars to 55.3 billion dollars. During the same period, gold reserves also fell by 16.1 billion dollars to 100 billion dollars.
However, the main blow to reserves came from the gold side. The Bank’s gold reserves fell by 16 billion 117 million dollars compared to the previous week, dropping from 116 billion 166 million dollars to 100 billion 49 million dollars. The sharp decline in gold reserves stems both from the Central Bank’s sales and the fall in gold prices.
Bloomberg reported that the Central Bank sold approximately 60 tonnes of gold over the two weeks following the start of attacks on Iran, with the total value of the sales amounting to around $8 billion.
Fertiliser shortage begins, farmers wait in line
It is reported that a fertiliser shortage has begun in Turkey and that farmers are queuing for fertiliser, having been unable to obtain sufficient supplies for weeks. Some farmers I spoke to in Çanakkale stated that they had applied for fertiliser and had been waiting for days, noting that it was time to fertilise and that if they could not obtain it, they would have to buy liquid fertiliser, which is more expensive.
Agriculture and Forestry Minister İbrahim Yumaklı, however, said, “There is no problem regarding food; there is no shortage in fertiliser supply. I would like to reiterate that there are no issues regarding fertiliser supply, particularly during the planting season or, more accurately, the growth phase.”
There is a supply shortage of fertiliser, and prices are constantly rising
As is well known, disruptions in the Strait of Hormuz and attacks on Qatar’s energy infrastructure have directly affected the fertiliser industry, which relies heavily on natural gas during the production process. Qatar’s state-owned energy company, QatarEnergy, announced that it had suspended gas production due to developments at its LNG facilities, whilst also suspending production at its urea plant, which single-handedly meets 14 per cent of global demand. This disruption created a domino effect, leading to the suspension of production at three strategic fertiliser plants in India and four in Bangladesh.
Commodity markets have responded to the disrupted supply-demand balance with price rises. Urea prices from the Middle East, which stood at $482 per tonne on 27 February, reached $750 by the end of March, marking an increase of approximately 56 per cent.
Experts warn that if the crisis persists, nitrogen fertiliser prices could double from current levels, whilst phosphate prices could rise by more than 50 per cent. This scenario represents an “unmanageable” financial burden for the global agricultural sector, which is already struggling with high input costs.
“Immediately remove the excise duty and VAT on farmers’ diesel”
CHP MP Ahmet Baran Yazgan addressed Treasury and Finance Minister Mehmet Şimşek regarding fuel price hikes, saying: “Stop playing with figures and trying to reduce inflation on paper. Go out onto the streets, listen to the voice of our farmers. Immediately remove the excise duty and VAT burden on the diesel used by farmers. Give up the easy way out of closing the budget deficit by taking money from the people’s pockets.”
Rise in plastic raw material prices accelerates
Plastic raw material prices, which have been rising due to the impact of the US-Israel-Iran conflict, have reached a new threshold following the strike on a petrochemical plant in Tabriz. Ali Koçak, the representative of the plastic sector at the Konya Chamber of Industry (KSO), stated that the rise in plastic raw material prices has accelerated and, furthermore, access to raw materials has now become exceptionally difficult within the sector.
Highlighting that fluctuations in plastic raw material prices may continue in the coming period and that it may take time for supply conditions to stabilise, Koçak called on industry representatives to closely monitor developments in global markets and to exercise caution.
Mehmet Şimşek and Fatih Karahan met with investors in London
Mehmet Şimşek, Minister of Treasury and Finance, and Fatih Karahan, Governor of the Central Bank of the Republic of Turkey, met with investors and the financial community in London on 1–2 April. The main agenda of the two-day meetings was the impact of the war in the Middle East on the Turkish economy and how the economic management would deal with these adverse consequences.
Tim Ash of BlueBay Asset Management, who attended the meeting on 2 April, said the Turkish delegation’s presentation had been well received. Ash reported that confidence had been instilled regarding the resilience of the Turkish economy during the meetings and added: “As Turkey is a major oil importer, it is inevitable that it will be affected by this, but so far they have managed the situation quite well. They have not raised interest rates and have managed to defend the Turkish Lira, even if it means using Central Bank reserves.”
CHP report: Hot money policy has hit a wall, heavy debt burden exists
The CHP’s parliamentary group’s economic report noted that Turkey, where the trade deficit and consequently the current account deficit are on an upward trend, has been caught in the war with an international investment deficit of at least 345 billion dollars. The report highlighted that a significant portion of reserves had been lost due to “hot money flight”, stating that the economic policy based on “attracting hot money from abroad and keeping the TL strong to control inflation” had hit a brick wall. The report highlighted that Turkey was caught in “a very difficult external balance position” due to the crisis arising from operations against municipalities and the war, and emphasised that the principal amount of external debt due for repayment over the next 12 months had reached a record high of 239 billion lira.
The number of unemployed rose by 133,000 in a month; broad-based unemployment reached 30 per cent
According to TurkStat data, in February 2026, the number of unemployed aged 15 and over increased by 133,000 compared to the previous month, reaching 2,981,000. The seasonally adjusted unemployment rate rose by 0.3 percentage points to 8.5 per cent. The unemployment rate stood at 6.9 per cent for men and 11.6 per cent for women.
The unemployment rate among young people aged 15–24 rose by 1.4 percentage points in February compared with the previous month, reaching 15.8 per cent. The youth unemployment rate was estimated at 12.8 per cent for men and 21.8 per cent for women.
The underutilisation rate, comprising time-related underemployment, potential labour force and the unemployed, rose by 0.1 percentage points in February to 29.9 per cent.
TÜRK-İŞ: Poverty line surpasses minimum wage, reaching 32,793 lira
Turkish Confederation of Trade Unions (TÜRK-İŞ) announced the March results of its ‘Poverty and Hunger Line Survey’. TÜRK-İŞ calculated the ‘poverty line’ for a family of four at 32,793 lira and the ‘poverty threshold’ at 106,817 lira in March. The ‘cost of living’ for a single worker stood at 42,585 lira per month.
The automotive market contracted by 13% in March
The US attack on Iran also affected automotive sales. The March market for cars and light commercial vehicles contracted by 12.75 per cent compared to March 2025, totalling 101,997 units. In March, car sales fell by 13.04 per cent compared to the same month of the previous year, reaching 79,857 units, whilst the light commercial vehicle market contracted by 11.69 per cent to 22,140 units.
New company registrations fell, closures rose
According to The Union of Chambers and Commodity Exchanges of Türkiye (TOBB) data, the number of companies established in Turkey in February fell by 15.1 per cent compared to the previous month to 9,432, whilst the number of companies closing increased by 1.1 per cent to 1,621. Consequently, the number of companies established in February fell by 15.1 per cent compared to January, dropping from 11,115 to 9,432. During the same period, the number of companies closing also rose by 1.1 per cent to 1,621. In January, 1,604 companies had closed. In February, the number of companies established increased by 3.3 per cent compared to the same month last year, whilst the number of companies that closed decreased by 5.8 per cent.
The trade deficit reached $9 billion in February
TurkStat released the trade data for February. In February, the trade deficit rose by 15.9 per cent compared to the same month last year, reaching $9.031 billion. The export-to-import coverage ratio fell from 72.7 per cent to 70.0 per cent.
In the January-February period, the trade deficit rose by 13.8 per cent to 17 billion 415 million dollars, whilst the export-to-import coverage ratio fell to 70.4 per cent.
In February, exports rose by 1.5 per cent compared to the same month last year, reaching 21 billion 49 million dollars. During the same period, imports rose by 5.5 per cent to reach $30.08 billion. In the January–February period, exports fell by 1.3 per cent to $41.361 billion, whilst imports rose by 2.8 per cent to $58.776 billion.
Economic confidence indices in free fall
The Turkish Statistical Institute has published the economic confidence index data for March 2026. Whilst the index fell, declines in the sub-categories were also notable. The economic confidence index, which stood at 100.7 in February, fell by 2.8 per cent in March to 97.9.
In March, the consumer confidence index fell by 0.8 per cent compared to the previous month, reaching 85.0. The real sector (manufacturing industry) confidence index fell by 3.9 per cent to 100.0. The services sector confidence index fell by 0.5 per cent to 113.2, whilst the retail trade sector confidence index fell by 2.0 per cent to 113.6. The construction sector confidence index, meanwhile, fell by 3.9 per cent to 80.6.
Mobile phone tariffs have increased with the introduction of 5G
Under a regulation issued by the Information and Communications Technologies Authority, the maximum charges that mobile operators may apply have been revised. Increases have been implemented for domestic and international calls, as well as for SMS and service charges. Under the regulation, the per-minute charge for domestic calls has risen from 4.11 TL to 4.75 TL, and for international calls from 48.68 TL to 56.37 TL. The new tariffs have come into effect.
The untaxed wealth of the richest 0.1% equals that of the poorest 50%
According to an Oxfam report, the world’s ultra-rich have stashed trillions of dollars in tax havens: 2.84 trillion dollars are held in offshore accounts. This wealth is equal to that of the poorest 50 per cent of the world’s population. In short, the untaxed wealth of the world’s richest 0.1 per cent alone exceeds the combined assets of billions of the poorest people.
Christian Hallum, Oxfam’s head of tax policy, told Euronews that this situation cannot be explained by financial technicalities alone, stating, “This issue is about power and impunity.”
According to the report, approximately 80 per cent of offshore wealth is held by the top 0.1 per cent. A smaller elite within this group controls trillions of dollars in wealth. It is noted that total offshore financial wealth exceeds 13 trillion dollars and constitutes a significant portion of the global economy.
Oxfam proposes imposing a wealth tax on the ultra-rich and ensuring greater transparency in the tracking of assets to recover lost tax revenue.