United Nations Agency: Strait of Hormuz "Blockade" Intensifies Global Economic Pressure

The United Nations Conference on Trade and Development (UNCTAD) released an assessment report on the 1st, stating that the Strait of Hormuz is currently still effectively blocked, exacerbating global economic pressures.
The report shows that as a key channel for global energy trade, shipping activity through the Strait of Hormuz has nearly come to a halt, with the average daily vessel passage dropping from about 130 in February to only 6 in March, a decrease of approximately 95%.
UNCTAD pointed out that the “blockage” of the passage has disrupted the supply of most of the world’s oil and natural gas, directly affecting production, trade, and consumption, and impacting transportation systems such as maritime routes, air freight, and port logistics.
If the “blockage” persists or worsens, and energy infrastructure is damaged, it could lead to sustained high energy prices, resulting in ongoing inflationary pressures.
Regions highly dependent on Middle Eastern energy, such as South Asia and Europe, will face greater risks.
The report estimates that, assuming the conflict in the Middle East does not escalate further, global merchandise trade growth will slow from about 4.7% in 2025 to between 1.5% and 2.5% in 2026, and the global economy’s growth rate will decline from 2.9% in 2025 to 2.6%.
The report states that the conflict has increased financial pressures, with developing countries being hit hardest.
As investors withdraw assets, some developing countries may face currency devaluation and rising borrowing costs.
UNCTAD warns that disruptions in energy flows, rising prices, slowing trade, and tightening financial conditions collectively pose broad global economic pressures.
If the Strait remains blocked, it could trigger a wider chain reaction crisis, adversely affecting global development. (Xinhua News Agency)