DAR ES SALAAM, March 4 -- TANZANIA and the wider East African region are facing potential knock-on effects from escalating tensions between the United States and Iran, as conflict-driven volatility in global energy markets begins to reverberate through oil prices and trade costs.

Disruptions around the strategic Strait of Hormuz, which handles roughly one-fifth of the worlds oil supply, have already driven Brent crude up sharply and raised the risk premium in global energy markets, with analysts warning prices could approach or exceed 100 US dollars per barrel if tensions persist or shipping routes become unsafe.

For oil-dependent, net-importing economies like Tanzanias, such price pressures can translate quickly into higher fuel costs,...