Shock to world trade: UN describes situation with Strait of Hormuz

Large-scale disruptions in the Strait of Hormuz have caused a "shock to world trade", according to a report from the UN Conference on Trade and Development (UNCTAD).

The document notes that as a result of the de facto closure of the strait, global trade growth could slow by a factor of three - from 4.7% last year to an estimated 1.5-2.5% this year - driven by declining global demand and heightened uncertainty.

As a result, experts anticipate a slowdown in global economic growth.

"Global economic growth is expected to slow from 2.9% in 2025 to 2.6% in 2026, assuming the conflict does not escalate further",

the UNCTAD report stated.