Ongoing tensions in the Strait of Hormuz are disrupting global energy and fertilizer flows. Shipping through the key waterway has dropped the by over 95 per cent. This sharp decline is affecting oil, gas, and fertilizer movement worldwide.
Energy prices have surged across regions due to the disruptions. Higher oil and gas costs are pushing up fertilizer prices. Transport costs are also rising. These combined pressures are increasing risks to food production and supply.
UN Warns of Wider Economic Risks
A report by the United Nations Conference on Trade and Development says the global impact depends on how long the disruption lasts. It stresses that the situation exposes the vulnerability of major maritime chokepoints. These chokepoints can transmit shocks across global trade and commodity markets.
The report warns that developing countries face greater risks. Many already struggle with high debt and limited access to finance. Rising energy, transport, and food costs could strain public finances. They may also increase pressure on household incomes.
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The UN urges all parties to de-escalate tensions. It calls for the protection of maritime routes, ports, and seafarers. It also emphasises the need to maintain safe trade corridors under international law.
The report highlights the need for continued monitoring. The duration and intensity of the conflict will determine the full economic impact. Without stability, global food security and trade systems remain at risk.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
