The conflict involving Iran in 2026 has quickly emerged as one of the most consequential geopolitical developments in recent years. While hostilities remain concentrated in the Middle East, the economic ripple effects are being felt far beyond the region. Energy markets have reacted sharply, shipping routes are under strain, and uncertainty has begun to weigh on financial markets worldwide.
For business leaders, the central concern is clear: how will this conflict affect operations, costs, and long-term planning?
Since early 2025, the Democratic Republic of Congo (DRC) has been gripped by escalating conflict as the March 23 Movement (M23) armed rebel group seizes critical urban centers, including Goma and Bukavu. This surge in violence has rapidly destabilized the region, creating an exceptionally volatile environment for organizations and their employees.
Ethiopia’s central bank allowed the Birr, its local currency, to float or trade freely based on market forces on July 29, 2024. This decision triggered an immediate plunge of about 30% in the Birr’s value against the United States (US) Dollar. According to the Commercial Bank of Ethiopia, the country’s largest lender, the exchange rate had been 57.48 Birr per dollar on July 26, 2024. By August 16, 2024, it devalued further to 103.96 Birr per dollar, a drop of over 80%.
In June 2024, stories claiming Saudi Arabia didn’t renew a 50-year deal with the United States (US) to keep oil priced in dollars sparked speculation about the petrodollar’s collapse. Online commentators warned this could undermine the US dollar’s status as a hard currency. But is there any truth to this narrative? Birches Group is here to cut through the noise and provide human resources (HR) leaders with the facts.
In response to the escalating violence, the Haitian government declared a state of emergency and imposed nighttime curfews in some areas to regain control. Despite deploying more police forces, these measures have struggled against heavily armed gangs.
The situation in Myanmar, fueled by the military junta’s desire to maintain power, has triggered a domino effect of consequences affecting the lives of citizens. The political turmoil has translated into a harsh reality of economic hardship, social unrest, and deepening poverty.
Ghana’s debt crisis is greatly affecting individuals and firms across Ghana. Rising prices have eroded purchasing power, making it difficult for many to afford necessities. Businesses are facing increased costs and reduced consumer demand.
The recent drop in the peso’s value has affected ordinary Argentines, worsening already high inflation and making everyday life more challenging. The prices of essentials have skyrocketed, putting a strain on household budgets. In fact, consumer goods companies have increased their prices by nearly 10%, further stretching purchasing power.
Fighting between Israel and Hamas is expected to intensify in the coming weeks, and the escalating conflict has heightened fears of a long and brutal war. The international community, spearheaded by the UN, has expressed deep concern over the recent escalation of conflict. UN officials have called for an immediate ceasefire, respect for international law, and protection of civilians.
Iran’s countrywide protests have swelled in response to the Islamic republic’s economic stagnation. They are facing a record inflation of 42.9%
The currency devaluation is already pushing prices amid a significantly higher foreign exchange rate, cites Africanews. This change will cause considerable short-term pain but will correct the economy, say economic analysts. Nevertheless, Nigeria continues to face rising inflation and increased poverty rates, pressuring the government to address concerns.
Sudan’s deepening humanitarian crisis is set against multiple challenges, including economic struggles, natural disasters, and protracted refugee situations. Before the armed conflict began, 65% of the population lived below the poverty line. Decades of war, sanctions, and political instability have also added to the troubled nation’s economic hardships.
While the international community mobilizes to help Türkiye with its disaster needs, the ability to do so for Syria is much more complex. Demolished roads and tensions between rebel-held and government-controlled parts of the country slowed aid relief for Syria.
Without a political solution to the conflict, the economic crisis in Syria is expected to continue, and analysts expect hyperinflation to begin this 2023. The situation is still bleak as the country goes deeper into the crisis.
Lebanon is experiencing a financial and economic collapse that the World Bank ranks among the world’s worst since the 1850s. It’s not wrong to dollarize, but denominating salaries in US dollars requires careful thought. Remember that returning to the local currency is difficult once you’ve dollarized. Carefully consider how this process will affect your pay practices and staff.
Egypt’s inflation rose to 26.5% in January 2023, up from 21.9% in the previous month and 8% in January 2022. Employers in Egypt should keep a close eye on the local situation, as rapid economic events can drastically impact business continuity.
With the intent of the United States to reestablish ties and reinvest in Sub-Saharan Africa, employers in the region can anticipate a shift in the labor market. Monitoring the labor market early is critical for your organization to seize economic opportunities and remain competitive.
Workers are negotiating higher salaries, and employers are taking proactive steps. Here are a few examples of what employers in Turkey are doing in response to mounting inflation.
In November 2020, Zambia became the first African nation to default on its Eurobonds during the COVID-19 pandemic, bringing the country’s debt distress into headlines around the world. But recent events show the country’s economic outlook has markedly improved, given renewed optimism and increased investor confidence post-elections.
Zimbabwean authorities are struggling to pull the Southeast African nation from the grip of a severe economic crisis characterized by a rapidly devaluing local currency. Trust in the Zimbabwean dollar (Zimdollar) has been low after people saw their savings depleted by hyperinflation in 2008.
One of West Africa’s more prosperous countries has been rocked by a cost-of-living crisis. Inflation in Ghana reached 29.8% in June 2022, the highest level in two decades.
