Hormuz crisis 'strangling global economy', UN chief warns, demanding solutions

UN Secretary-General Antonio Guterres has warned that restrictions on free passage through the Strait of Hormuz are "impeding the delivery of oil, gas, fertilizer and other critical commodities" and "strangling the global economy."

Setting out three possible trajectories, Guterres said that even if restrictions on shipping and trade were lifted immediately, "supply chains will take months to recover," with global growth falling from 3.4 to 3.1 percent, inflation rising to 4.4 percent and trade slowing sharply.

"And a world still reeling from the shocks of a pandemic and the war in Ukraine will endure further economic distress. This is the best-case scenario," he said.

 

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