Hormuz shipping disruptions raise concerns about ripple effects: UN report

GENEVA, March 10 (Xinhua) -- Recent disruptions to maritime traffic in the Strait of Hormuz have raised concerns about potential ripple effects on energy markets, maritime transport and global supply chains, the United Nations Trade and Development (UNCTAD) said on Tuesday.

In an analysis report, UNCTAD said military escalation in the region has disrupted shipping flows through the Strait of Hormuz, a vital passage that carries about one-quarter of global seaborne oil trade, along with significant volumes of liquefied natural gas and fertilizers.

The report noted that oil markets reacted quickly to the disruption, with Brent crude prices rising above 90 U.S. dollars per barrel shortly afterward.

UNCTAD warned that the impact could extend beyond energy markets. Around one-third of global seaborne fertilizer trade passes through the Strait, potentially threatening fertilizer access for some of the world's poorest countries.

Higher costs for energy, fertilizers and transport could in turn drive up food prices and intensify cost-of-living pressures, the report said.

Developing economies may be particularly vulnerable to these shocks, as high debt burdens and rising borrowing costs limit their ability to absorb new price increases, it added.

The report underscored the importance of continued monitoring of the situation, especially its implications for vulnerable economies. ■