Nairobi, March 1 -- The widening conflict in the Middle East in the wake of joint US-Israel strikes against Iran has put Kenya's trade worth over Sh700 billion at risk, with ramifications for inflation on costly fuel.

The strikes killed Iranian Supreme Leader Ayatollah Ali Khamenei on Saturday, sparking chaos as Iran retaliated with attacks on Gulf cities, airlines halted flights and tankers carrying oil and other products suspended transit through the key Strait of Hormuz.

A surge in insurance costs, a spike in cargo freight charges and costly energy look set to trigger inflationary pressures on households struggling with diminished disposable incomes.

Brent crude jumped 10 percent yesterday to about $80 a barrel and Middle East leade...