UN agency: Strait of Hormuz obstruction intensifies global economic pressure

Geneva, April 1 (Xinhua) -- The United Nations Conference on Trade and Development (UNCTAD) released an assessment report on April 1, stating that the Strait of Hormuz is currently under blockade, exacerbating global economic pressure.

The report shows that as a key channel for global energy trade, transportation activities in the Strait of Hormuz have almost come to a halt, with daily vessel traffic decreasing from about 130 in February to only 6 in March, a decrease of about 95%.

The United Nations Conference on Trade and Development (UNCTAD) pointed out that the "obstruction" of channels has impacted most of the global oil and gas supply, directly affecting production, trade, and consumption, and affecting transportation systems such as sea routes, air cargo, and port logistics. If the obstruction persists or intensifies, and energy infrastructure is damaged, it may lead to long-term high energy prices, thereby bringing sustained inflationary pressure. Regions with high energy dependence on the Middle East, such as South Asia and Europe, will face greater risks.

The report predicts that, without further escalation of the Middle East conflict, the global commodity trade growth rate will slow down from about 4.7% in 2025 to 1.5% to 2.5% in 2026, and the global economic growth rate will decrease from 2.9% in 2025 to 2.6%.

The report points out that conflicts have led to increased financial pressure, with developing countries being the hardest hit. As investors withdraw their assets, some developing countries may face the dilemma of currency depreciation and rising borrowing costs.

The United Nations Conference on Trade and Development warns that the obstruction of energy flows, rising prices, slowing trade, and tightening financial conditions collectively constitute widespread global economic pressures. If the blockade of the strait continues, it may trigger a wider chain of crises and have adverse effects on global development.