Washington’s right-wing allies in Latin America are struggling to defend US President Donald Trump’s war in Iran, as higher fuel costs squeeze their economies.
The energy shock comes at a time when regional economies — already grappling with yawning budget deficits — can ill afford subsidies to soften the impact, leaving many Trump-aligned leaders few better options than “asking their people to grin and bear price increases,” Bloomberg reported.
Chile, which gets around two-thirds of its energy from imported fossil fuels, has hiked petrol prices by more than 50%, eroding the popularity of recently elected rightist president José Antonio Kast. The energy spike has sent a shudder across the region, where “fuel price hikes often topple governments,” an expert said.