Iran conflict may affect Vanuatu economy
March 5, 2026 10:45 pm | Posted in Business News | Share now TwitterFacebook
By Nicholas Mwai.
The government has warned that the ongoing Iran conflict could negatively impact Vanuatu’s economy, particularly through rising fuel prices and inflation.
Public Relations Officer (PRO) Kiery Mannasah, said Vanuatu relies heavily on imported diesel and fossil fuels, thus any disruption in global supply chains or price spikes will inevitably be felt locally.
Vanuatu remains highly vulnerable to global events beyond its control, he said.
He reaffirmed the government’s longstanding non-aligned foreign policy, stressing that Vanuatu will not interfere in conflicts involving major world powers.
“In terms of the position of the Vanuatu Government, we maintain a non-aligned position for the conflict and we will not interfere in the issues of big countries,” he said.
‘’We are too small for that. We cannot get tracked into the big countries with international powers.’’
He added that Vanuatu’s traditional diplomatic stance is clear.
“We want peace. We don’t want war. We don’t want countries to fight because we are too small. Vanuatu is too small to absorb the kind of global conflicts,” he said.
“The message from the government is that people need to be prepared. Of course there will be spill in terms of prices of fuel. It can cause inflation.
“Our economy economy must be resilient — resilient in terms of always having a safety net in our traditional economy.”
Manasah said the government is encouraging a renewed focus on strengthening the country’s traditional and local economic systems as a barrier against external shocks.
“That is why recently the government is redirecting us to look back at NSDB, and especially to look into the economy. Part of the economy is to strengthen our traditional economy — that’s where our strength lies,” he said.
He noted that during major global disruptions, subsistence farming, local food production and community-based support systems have historically helped Vanuatu weather economic downturns.
Manasah said authorities are closely monitoring international developments and assessing whether intervention measures may be necessary.
“Definitely the Government will stand by to see if there is need to step in — to provide some measures, if it needs to subsidize some things,” he said.
However, he emphasized that while monitoring events, the Government must also be cautious in its international statements to maintain its diplomatic position.
