UNCTAD warns of Strait of Hormuz risks

The United Nations Conference on Trade and Development (UNCTAD) has confirmed that reopening the Strait of Hormuz will provide an immediate boost to energy markets. However, it warns that fragile economies remain vulnerable to long-term increases in food and fuel prices. The report indicated that food and transportation systems will take longer to recover from disruptions that lasted over 100 days, with food prices continuing to rise by up to 5%, thereby increasing the risk of malnutrition among children and putting additional strain on poor families. The report also identified 61 vulnerable economies that are at risk of oil and grain import shocks resulting from the Strait disruptions, calling for international support to help these economies recover.

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