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  Economist Warns of Oil Market Shock as Middle East Crisis Deepens

By Chol D. Johnson

A senior economic adviser has called on the government of South Sudan to put precautionary measures in place amid escalating tensions involving Israel, the United States, and Iran.

He warned that further instability could significantly affect the country’s fragile economy.

In an exclusive interview with this outlet, Senior Economic Adviser Abraham Mamer said South Sudan’s heavy dependence on oil exports makes it particularly vulnerable to geopolitical shocks in the Middle East.

“The Middle East is where our oil is sold. If war erupts, it will disrupt exports, and like many other countries, we will be affected,” Mamer said.

South Sudan’s crude oil is exported through Port Sudan before passing into the Red Sea, a strategic shipping route that has increasingly become a focal point of regional tensions.

Mamer noted that while armed conflict can sometimes push global oil prices higher, such increases would not automatically translate into economic relief for South Sudan. Instead, he emphasized that the country’s core challenge remains low production capacity.

“It is not about the price alone; it is about the volume of production,” he said. “For us to sustain our economy, we need to increase output. If production declines while international crises intensify, the impact on our economy will be severe.”

South Sudan relies on oil revenues for the bulk of its national budget, making economic stability highly sensitive to global market fluctuations and transport disruptions.

Mamer also warned of potential secondary effects, including disruptions to air travel and international trade if the conflict widens. Such developments could affect South Sudanese citizens abroad and further strain business operations.

He urged the government to strengthen economic planning, diversify revenue sources, and enhance diplomatic engagement to cushion the country against possible external shocks.

“As tensions rise globally, we must prepare internally,” he said, calling for proactive measures to protect South Sudan’s economic stability.

 

 

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