World: Two months into Iran war, IRC operational costs spike by up to 50% as fuel prices rise and aid routes collapse

Countries: World, Iran (Islamic Republic of), Sudan Source: International Rescue Committee New data from IRC procurement teams shows: Air freight capacity on key routes is down up to 50% Air freight costs are up 40-62% since last year Sea freight routed around the Strait of Hormuz is costing up to 4 times more due higher insurance premiums Container costs are up to +316% on Middle East routes The war’s estimated $25 billion cost could cover the entire global humanitarian aid appeal, delivering life-saving assistance to 87 million people New York, NY, May 4, 2026 — Two months into the Iran war, disrupted logistics, rising fuel prices and severe supply shortages are driving up costs and forcing the International Rescue Committee (IRC) to increase operational spending by up to 50%. These pressures are draining already stretched aid budgets, even as humanitarian needs continue to surge in crises such as Sudan. Dubai, one of the world’s key humanitarian hubs, has been hit hard by the war and the blockade of the Strait of Hormuz, driving up the cost of delivering aid. At the same time, the estimated $25 billion spent on the conflict could cover the global humanitarian funding gap worldwide. Ciaran Donnelly, IRC’s Senior Vice President for Crisis Response, said: “The ongoing disruption to regional supply chains is having a direct and escalating impact on the International Rescue Committee’s operations, with fuel, pharmaceuticals, ready-to-use therapeutic food (RUTF), and critical medical supplies among the most affected. Shipments have faced prolonged delays and complex rerouting: in Sudan, a pharmaceutical consignment was stranded in Dubai for weeks before being redirected overland to Oman and flown onward, while in Myanmar similar risks to essential supplies were narrowly mitigated through an emergency airbridge to Thailand coordinated by partners. “Significant consignments of medicines and RUTF destined for critical programs in Chad have remained stuck since early April due to suspended outbound flights and limited cargo capacity, delaying life-saving assistance, though recent resumption of some flight operations offers a pathway to move these goods. At the same time, severe port congestion in key hubs including Mombasa, Dar es Salaam, and ports in Nigeria has led to extended dwell times of 7 to over 15 days, further slowing the delivery of humanitarian supplies and directly affecting IRC’s operations across East and West Africa. “As the blockade continues, the estimated $25 billion cost of the Iran war to date could cover the entire funding requirement needed to save the lives of more than 87 million people facing catastrophic hunger, displacement, and conflict around the world. ” The IRC calls on governments and all actors to prioritize humanitarian access in all decisions affecting airspace and maritime routes, and to provide flexible, predictable funding that enables aid organizations to respond effectively to rising costs and supply chain disruption. The IRC has also issued urgent recommendations to protect civilians and ensure humanitarian aid can reach those most affected by the escalating violence, including: Restore respect for international humanitarian law: Pending a cessation of hostilities, which would offer the greatest protection for civilians, all parties should respect international law and protect civilians and civilian infrastructure. Prioritize aid funding and delivery to maximize impact and sustainability: flexible funding is urgently needed to scale up emergency response efforts, expand health and protection services, and provide cash assistance and essential relief items to families who have fled with little or nothing. Media contacts IRC Global Communications communications@rescue. org

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