Save the Children has disclosed that escalating fuel and supply costs stemming from the conflict between the United States and Iran have severely constrained its operational capacity. The humanitarian organization calculated that additional expenses for transporting aid, fuel, food, and medical supplies have reached $13 million, resources that could have been directed toward assisting approximately 1.5 million more children across its service areas.
Oil prices, which were anticipated to remain around $60 per barrel this year, surged above $100 following the initiation of hostilities and Iran’s restriction of supply flows through the Strait of Hormuz. Though prices moderated following a ceasefire in the summer, they have recently climbed back above $90 as tensions have escalated anew. The volatility has prompted concerns about prolonged instability, particularly given recent statements from the US administration regarding potential expanded economic sanctions against Iran.
The supply chain disruption extends beyond energy costs. The Strait of Hormuz functions as a critical shipping route for fertilizer and other commodities, causing ripple effects across food pricing and related markets. Save the Children operates in approximately 110 countries and previously reached more than 30 million children through health and nutrition initiatives, including work in challenging environments such as Afghanistan.
The organization noted that the $13 million in additional costs equates to the operating expenses of 47 health clinics in Afghanistan over six months or five 30-bed hospitals in Somalia for a year. Despite these obstacles, the charity stated it is pursuing alternative supply sources and transport routes to manage expenses.
The funding challenge arrives as global development assistance budgets have declined substantially. The Organization for Economic Co-operation and Development reported a 23% reduction in global aid spending in real terms last year, with the Trump administration significantly reducing USAID and other nations, including the UK, implementing cuts to development budgets.
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