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Higher Fuel Costs Due to Iran War Mean Fewer People Will Receive Aid Globally, Nrc Says
Published by Global Banking & Finance Review®
Posted on April 23, 2026
3 min readLast updated: April 23, 2026
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The Iran war has driven global fuel and energy costs sharply higher, severely increasing operational expenses for aid agencies like NRC, forcing them to reduce scope of assistance while donor funding is diverted or cut.
Higher Fuel Prices From Iran War Threaten Global Humanitarian Aid, Says NRC
Impact of Rising Fuel Costs on Humanitarian Operations
By Gwladys Fouche
OSLO, April 23 (Reuters) - The Iran war is having a devastating humanitarian impact globally with higher energy prices making everything from filling the tank of an aid lorry to paying employees and buying food for displaced people costlier, the head of the Norwegian Refugee Council said on Thursday.
The NRC is one of the world's leading non-governmental aid organisations focused on displacement. Its boss, Jan Egeland, was the United Nations' top humanitarian official between 2003 and 2006.
Operational Challenges Due to Fuel Price Increases
"We have 1,500 vehicles in our operations; they run on diesel. In some countries, it's twice the cost now to run those," Egeland told foreign reporters at NRC headquarters in Oslo.
Increased Costs for Essential Services
"The generators needed in the places we haven't solarized yet are much more expensive, so running a school or a hospital (is more expensive)," he said.
Rising Food and Staff Expenses
"The food that we have to purchase on the market - local markets, regional markets - has become much more expensive per family in need. And our staff find it very hard to live on the salary that we can give them compared to before."
The result is the NRC will help fewer people than before, at a time when needs are "exploding," and funding from the vast majority of donor countries has been redirected to defence budgets, Egeland said.
"Through this year, fewer people will get assistance because of the cost increase," he said.
Gaza Restrictions and Humanitarian Aid
GAZA RESTRICTIONS
The NRC has been active in the occupied Palestinian territories since 2009, including during the Gaza war.
Legal and Operational Barriers
In February, the Israeli Supreme Court temporarily blocked Israel's government from shuttering the Gaza operations of dozens of aid organizations, which petitioned the court in a dispute over new Israeli rules requiring them to name Palestinian staff.
But the NRC still lost its registration with Israeli authorities, Egeland said. While it still has local staff in the Gaza Strip, it cannot send international staff to support them.
"We have already had to relocate our headquarters to Amman," he said. "We do remote leadership management from Amman."
Political Responses and Ongoing Challenges
He praised U.S. President Donald Trump's 20-point plan for Gaza as "wonderful" because "it stopped the massacres and the full-scale war."
"But we are now frozen in some halfway house where Israel is still militarily there," he said. "They're still destroying homes. Hamas is not disarmed and the aid groups are denied access. This is no peace. This is no implementation. The Trump peace plan is in grave danger."
Israel, which controls all access to the Gaza Strip, denies withholding supplies for its more than 2 million residents.
Yet Palestinians and international aid bodies say supplies reaching the territory are still insufficient, despite a ceasefire reached in January that included guarantees of increased aid.
(Reporting by Gwladys Fouche in OsloEditing by Rod Nickel)
Key Takeaways
- •Conflict-related oil shocks have doubled diesel and generator costs for humanitarian operations globally, including NRC—escalating logistical and operational expenses significantly.
- •Supply chain disruptions and soaring fuel prices are forcing aid agencies, including IRC and NRC, to scale back services in regions like Africa, the Middle East, and beyond due to inflated costs.
- •Simultaneously, major donors are redirecting budgets toward defense, reducing humanitarian funding. NRC warns fewer people will receive aid amid exploding needs and underfunded emergency appeals.
Frequently Asked Questions about Higher fuel costs due to Iran war mean fewer people will receive aid globally, NRC says
1How are higher fuel costs impacting humanitarian aid?
Increased fuel costs are raising aid delivery expenses, reducing the number of people organizations like the NRC can assist.
2Why are aid organizations facing higher operational costs?
Higher energy prices from the Iran war have made transport, staff salaries, and food purchases more expensive for aid groups.
3What challenges is the NRC facing in Gaza?
The NRC lost its registration with Israeli authorities and cannot deploy international staff, relying on remote management from Amman.
4How has funding for humanitarian aid changed?
Most donor countries have redirected funds toward defense budgets, reducing available funding for humanitarian needs.
5How many operational vehicles does the NRC have, and what is their fuel situation?
The NRC operates 1,500 vehicles, with fuel costs in some countries now double previous rates, straining resources.
