United Nations: Disruption of Transport in the Strait of Hormuz Impacts Global Supply Chains

The United Nations Conference on Trade and Development (UNCTAD) released a report on the 10th, stating that the escalation of the situation in the Middle East has disrupted transportation in the Strait of Hormuz, with impacts extending far beyond the region, affecting energy markets, maritime transport, and global supply chains.

The report pointed out that the Strait of Hormuz is a critical global energy transport route, handling about one-quarter of the world's seaborne oil trade, as well as significant volumes of liquefied natural gas and fertilizer shipments. Disruptions in shipping through the Strait of Hormuz have already driven up energy and fertilizer prices, while shipping costs—including freight rates, marine fuel expenses, and insurance premiums—are also rising, leading to increased transportation costs across the entire supply chain. These factors could further push up food prices, affecting the daily lives of people in some countries and regions, with particularly severe impacts on the most vulnerable economies.

The report emphasized that developing economies are especially at risk, as some are burdened with heavy debt, narrowed fiscal space, and limited capacity to absorb new price shocks.

The report stated that the overall impact of the Middle East escalation on the global economy will depend on the duration and scale of disruptions to shipping in the Strait of Hormuz. Continuous monitoring of the current situation is necessary, with particular attention to the impact on vulnerable economies.