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UNCTAD: SMEs hit hard by Hormuz disruptions
A report from the United Nations Conference on Trade and Development (UNCTAD) warns that disruptions in shipping movements through the Strait of Hormuz threaten small and medium-sized enterprises (SMEs), which account for approximately 90% of global companies and 70% of employment opportunities. These firms may face marginalization or exclusion from international supply chains due to rising shipping and energy costs, as well as financial constraints resulting from the ongoing conflict between the United States and Iran. The organization indicates that these companies are at significant risk of reducing production, delaying investments, or withdrawing from value-added markets, largely because they are less resilient compared to larger corporations. This situation is exacerbated by increasing security tensions and their impact on oil prices, which have surpassed $99 per barrel, further amplifying operational pressures on small businesses.
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