Closure of Strait of Hormuz Could Trigger Rise in Food Prices, Warns UN
The United Nations has warned that closing the Strait of Hormuz due to conflict could increase food prices and disrupt global trade and economic growth.
Prasanth Subramani
The United Nations Conference on Trade and Development (UNCTAD) has warned that the closure of the Strait of Hormuz due to ongoing conflicts could have serious consequences for the global economy.
According to the UN body, shutting down this crucial maritime route could lead to a sharp rise in food prices and living costs worldwide.
The Strait of Hormuz, which connects the Persian Gulf with the Arabian Sea, is one of the world’s most important routes for transporting oil and other essential commodities.
If the strait is closed because of the ongoing conflict in the Middle East, it could disrupt global supply chains, increase transportation costs, and negatively affect international trade and economic growth.
The UN warned that such disruptions could have widespread effects, especially for countries dependent on imported energy and food supplies, ultimately impacting global markets and consumer prices.
