Haiti imposes austerity measures as Iran war drives up oil prices and disrupts supplies

PORT-AU-PRINCE, Haiti (AP) — Haiti’s government announced new austerity measures on Tuesday as the war in Iran disrupts critical oil supplies and drives up prices worldwide.

Officials in the troubled Caribbean country imposed a ban on the purchase of any new vehicles, will reduce fuel expenditures for public institutions and said that foreign travel will be limited to essential missions authorized by the prime minister.

In addition, security escorts will be limited to one vehicle in a country where gangs control an estimated 90% of the capital, Port-au-Prince, and swaths of rural areas.

A statement signed by Prime Minister Alix Didier Fils-Aimé said that the measures will allow the government “to anticipate serious repercussions on the already fragile macroeconomic balance and public finances in particular.”

“The government has no choice but to further reduce state spending,” the statement said.

Poverty across Haiti has deepened as gangs continue to seize control of more territory since the July 2021 assassination of President Jovenel Moïse.

Countries around the world have taken other measures as the war rages on, including shifting to a four-day work week.