'Adapt to higher prices', UN official warns amid Hormuz standoff and threat of new war
The Iran war and the standoff in the Strait of Hormuz have upended life across the Middle East, forcing governments and people to adapt to a higher cost of living at a pace that would normally take decades, a UN official has warned. Abdullah Al Dardari, UN Assistant Secretary-General and Director of the Regional Bureau for Arab States at the UN Development Programme, told The National how the…
A UN official has warned that the ongoing Iran war and the standoff in the Strait of Hormuz have rapidly changed priorities across the Middle East. Abdullah Al Dardari, UN Assistant Secretary-General and Director of the Regional Bureau for Arab States, spoke at the Manama Dialogue forum in Bahrain. He explained that people are having to adjust to higher prices, less subsidies, and more taxation in a rapid timeframe, far quicker than previous crises.
The war with Iran has caused the deepest oil and gas shock in modern history, deeper than previous conflicts. Countries that were previously classified as oil-rich or oil-poor are now in a new category of "rich but fragile," with financial buffers but also facing challenges. Gulf states have shown responsibility in improving regional connectivity to mitigate the impacts of the Strait of Hormuz closure.
However, the widening gap between the "haves" and "have-nots" due to the Iran war has raised concerns about potential division in the region. Despite these challenges, Mr. Dardari believes that the essence of the problem remains in Palestine, as highlighted during the UNGA and in upcoming reports.
Written by urgent.news from The National UAE's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
