Hormuz impacts less-developed economies
According to UNCTAD, 61 net importers of energy and cereals are severely affected by disruptions to shipping through the Strait of Hormuz amid the war in the Middle East. The post Hormuz impacts less-developed economies appeared first on ANBA News Agency .
The Strait of Hormuz's shipping disruptions disproportionately affect least developed countries and small island developing states, according to data from the United Nations Conference on Trade and Development (UNCTAD). These 61 economies face a dual challenge, as they are net importers of both energy and cereals, making them particularly vulnerable to shipping issues.
During the "Hormuz in crisis: Protecting vulnerable economies" session at the World Trade Organization (WTO) Public Forum in Geneva, UNCTAD Secretary-General Pedro Manuel Moreno highlighted that many of these nations entered the crisis with significant debt and limited financial reserves. UNCTAD emphasizes that open, safe, and predictable maritime routes are essential not only for trade but also for overall development.
Around 11% of global maritime trade by volume and about one-third of seaborne oil exports pass through the Strait of Hormuz. A 50% rise in oil prices could increase oil import costs by $20.4 billion annually for these vulnerable economies. Additionally, fertilizer supplies are a concern, as a third of global seaborne fertilizer trade transits through the Strait.
Higher energy and fertilizer costs can impact farmers, food prices, and future harvests. Moreno stressed that while shocks occur rapidly, their effects persist for extended periods, underscoring the urgency of addressing Hormuz-related challenges.
Written by urgent.news from ANBA News Agency's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
