Brazil's Secretary of Foreign Trade, Tatiana Lacerda Prazeres, warned on Monday that rising oil prices and increased costs in international freight can put pressure on global inflation as a result of the conflict in the Middle East involving the United States, Israel, and Iran. "Thinking about global impacts, the oil shock is the main one," affirmed the Brazilian official in statements to the Valor Econômico newspaper. Lacerda explained that the conflict can also generate disruptions in international logistics chains, affecting the costs of maritime transport and insurance linked to foreign trade. "There is also a logistics crisis that affects freight, insurance, and maritime fuel," she added. According to the Argentine News Agency, this has repercussions for global inflation. According to the secretary, another relevant factor is the fertilizer market, a key input for world agricultural production and for food-exporting countries like Brazil, a component related to the South American country's foreign trade. She also added that the Brazilian government is closely monitoring the possible impact of the conflict on agricultural products relevant to trade with the Middle East, specifically chicken, corn, and sugar, due to their importance in the conflict zone, whose duration will be decisive in measuring the economic effects. The Brazilian official added that although Brazil is a net oil exporter, the overall balance from an escalation of the conflict tends to be negative for the global economy due to the combined impact on energy, transportation, fertilizers, and food.
