How Middle East conflict is costing '$1 billion a day'

The United Nations warns aid funding is falling dangerously short as conflicts spread

Last updated:
Tricia Gajitos, Reporter
Flames and smoke rise from an oil storage facility struck as attacks hit the city during the US–Israeli military campaign in Tehran, Iran
Flames and smoke rise from an oil storage facility struck as attacks hit the city during the US–Israeli military campaign in Tehran, Iran
AP

Dubai: The United Nations (UN) has warned that the escalating conflict in the Middle East is costing around $1 billion a day, while humanitarian agencies struggle with a severe shortage of funding to assist millions of vulnerable people worldwide.

According to UN relief chief Tom Fletcher, the Middle East military escalation has resulted in rapidly expanding crises, with civilians paying "the heaviest price."

“This is a moment of grave peril for Lebanon, and for the region. For all of us,” said UN in a post on X (formerly Twitter).

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$14 billion funding gap

In December last year, the UN has launched a $23 billion appeal to support about 87 million of the world’s most vulnerable people. However, the appeal remains roughly two-thirds underfunded.

Fletcher has noted that more than $14 billion is still needed to carry out the planned humanitarian response.

"This is at a time when conflict in the Middle East is costing $1 billion a day,” stated the UN relief chief.

"Even just $1 billion would allow us to save millions of lives."

Moreover, Fletcher has bared that Gaza and Sudan are currently ranked on top of the list of those needing urgent humanitarian relief.

Strait of Hormuz disruption

Fletcher has also expressed the growing concern over the impact of the closure of the Strait of Hormuz on March 2.

The waterway is one of the world’s most important energy routes, handling about 20 percent of global oil shipments. Disruptions to this shipping corridor could have great effects on global markets, particularly for food, energy, and fertiliser prices.

"I'm worried that actually further escalation will damage other supply routes. All of this has a direct impact on our humanitarian supplies, including going to areas of key need in sub-Saharan Africa," said Fletcher.

‘We need a movement’

Meanwhile, the UN relief chief has stressed that protecting civilians and infrastructure must remain the international community’s priority.

"Encouraging backing from governments for our plan to save 87m lives in 2026. In just one month, we’ve reached 7m people with lifesaving help. But much more needed," posted Fletcher on X.

Additionally, he has urged member states to do more to protect humanitarian workers, following the recent deaths of aid personnel in Sudan, Lebanon, and the Democratic Republic of the Congo.

"Now we need a movement. We need you," added Fletcher.

Last year, the UN has mentioned that 90 percent of those killed in drone attacks were civilians, many of whom were humanitarians.

Tricia is a reporter and anchor whose work focuses on people, policy, and the Filipino community at home and abroad. Her reporting spans national affairs, overseas Filipinos, and major developments across the Middle East. She holds a degree in Broadcasting and has contributed to leading media organisations. With experience across television, print, and digital platforms, Tricia continues to develop a clear, credible voice in a rapidly evolving global media landscape.

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