The strategically crucial Strait of Hormuz has effectively become blocked, posing a serious threat to the global economy, according to a new assessment by the United Nations Conference on Trade and Development.
In a report released on Wednesday, the agency said vessel traffic through one of the world’s most important energy corridors has nearly come to a halt. While an average of around 130 ships passed through the strait each day in February, that number fell sharply to just six in March—a drop of nearly 95 percent in just one month.
UNCTAD warned that the disruption to this vital shipping route has significantly affected global supplies of oil and natural gas. The impact is already being felt across production, trade, and consumption worldwide. In addition, transportation systems—including maritime shipping, air cargo, and port operations—are facing growing pressure.
The agency cautioned that if the disruption continues or worsens, particularly if energy infrastructure is damaged, fuel prices could remain high for an extended period. This would likely lead to persistent inflationary pressure across the global economy.
The report also noted that regions heavily reliant on Middle Eastern energy—especially South Asia and Europe—are now at greater economic risk as the crisis deepens.
