Mideast Countries Brace for Price Hikes as Russia Withdraws from Grain Deal

The suspension of a grain deal between Russia and Ukraine, brokered by the U.N. and Turkey, has raised concerns about rising food prices in lower-income Middle Eastern countries like Egypt, Lebanon, and Pakistan. These countries, already struggling with economic woes, fear that increased food prices could worsen poverty levels and strain government finances. While some have diversified their wheat sources and don't expect shortages, the uncertainty surrounding price hikes could exacerbate hunger. The end of the grain deal also puts pressure on governments to maintain bread subsidies and avoid raising costs for households. Egypt, the world's largest wheat importer, relies heavily on imports from Russia and Ukraine, while Lebanon depends on Ukraine for 90% of its wheat. Pakistan, however, has seen a bumper crop this year despite previous flooding.