The United Nations has warned that the closure of the Strait of Hormuz could trigger a sharp rise in global food prices and worsen the cost-of-living crisis worldwide amid the ongoing tensions in West Asia.
According to a report released by the United Nations Conference on Trade and Development (UNCTAD), the military escalation following the US-Israel strikes on Iran and Tehran’s retaliation has already disrupted shipping routes through the crucial maritime passage.
The Strait of Hormuz is one of the world’s most important oil transit routes, carrying nearly a quarter of global seaborne oil trade along with significant volumes of liquefied natural gas and fertilisers. Any disruption in this narrow waterway could severely impact global energy markets, maritime transport and supply chains.
The report warned that rising energy, fertiliser and transportation costs—including higher freight rates, bunker fuel prices and insurance premiums—could lead to increased food prices across the globe, placing additional financial pressure on households, particularly in vulnerable economies.
Speaking at the daily press briefing, Stephane Dujarric, spokesperson for UN Secretary-General Antonio Guterres, said the analysis highlights “significant risks to global trade and development” if the strait’s operations are disrupted.
UNCTAD further noted that the situation demonstrates how geopolitical tensions around key maritime chokepoints like the Strait of Hormuz can send shockwaves through global supply chains and commodity markets, potentially affecting economies far beyond the region.
