On Tuesday, the United Nations warned of severe global economic consequences in the event of the closure of the Strait of Hormuz.
Citing a new report by the UN Conference on Trade and Development (UNCTAD), UN spokesman Stephane Dujarric told a news conference that the potential impact of closing the Strait of Hormuz would pose a “significant risk to global trade and development”.
“The report highlights that the Strait of Hormuz is a critical maritime point through which about a quarter of global oil transported by sea passes and about one-third of the global fertilizer trade,” Dujarric said, adding that this includes “about 16 million tons of fertilizer per year.”
Pointing to the recent rise in Brent crude oil prices, which have surged above $90 a barrel due to regional instability, he said: “According to UNCTAD data, since February 28, shipping traffic through the Strait of Hormuz has dropped by 97%.”
The UNCTAD report warns that such disruptions could lead to an increase in food prices and create additional pressure on the cost of living, especially for vulnerable categories of the population.
“The final scale of the economic impact will depend on the duration and intensity of the disruption,” Dujarric pointed out, calling for continuous monitoring to protect vital trade routes.
The Strait of Hormuz has been at the center of energy market concerns since Iran’s Islamic Revolutionary Guard Corps (IRGC) announced its closure to transit following US-Israeli attacks on Iran, which have been ongoing since February 28.
About 20 million barrels of oil pass through this waterway every day, and traffic disruptions have already caused oil prices to spike.
US authorities have introduced political risk insurance for tankers operating in the Persian Gulf and have indicated that the US Navy could escort shipments if necessary, although such escorting has not yet been confirmed.
Trump said on Monday that Iran would be hit “20 times harder” if it did anything to stop the flow of oil, Anadolu reported.
(Vijesti.ba)
