United Nations (APP – Urdu Point / Pakistan Point News – 11 Mar, 2026) Disruptions in shipping through the Strait of Hormuz are raising concerns across global energy, shipping and agricultural markets, with the potential to hit developing economies particularly hard, according to a new analysis released by the United Nations Conference on Trade and Development (UNCTAD) on Tuesday.
The report, titled “Unrest in the Strait of Hormuz – Implications for Global Trade and Development,” examines the economic implications of escalating tensions in the region and the resulting disruption of maritime traffic through one of the world’s most important trade lanes.
Nearly a quarter of the world’s seaborne oil trade passes through the Strait of Hormuz, along with large quantities of liquefied natural gas and fertilizers. The narrow corridor between Iran and Oman It connects the Persian Gulf to the Gulf of Oman and the Arabian Sea, making it one of the most important global shipping points of strategic importance.
According to the analysis, the impact on the markets was immediate. Brent crude Prices Oil prices rose rapidly above US$90 per barrel, while tanker freight rates and war risk insurance premiums rose sharply as shipowners and insurers reassessed the heightened security risks. Rising marine fuel costs also lead to higher shipping expenses across global supply chains.
The disruption also raises concerns about agricultural inputs, a risk that often receives less attention from energy markets. UNCTAD estimates that about a third of global seaborne fertilizer trade, about 16 million tons annually, passes through the Strait of Hormuz, making the passage a critical artery for fertilizer supplies destined for emerging and developing economies.
Supply disruptions could therefore extend beyond energy markets, potentially affecting… food Production and food prices in vulnerable areas.
“Disruptions in this corridor could affect energy and agricultural supply chains and lead to higher shipping and insurance costs,” the report warns, adding that the availability of fertilizer could become a major concern for countries that are already food insecure.
UNCTAD warns that developing economies may face the greatest exposure to the shock. Many of them already carry high debt burdens and limited fiscal space, limiting their ability to absorb rising costs of energy and agricultural input imports.
The agency notes that recent crises, including the COVID-19 pandemic and the war in Ukraine, have shown how quickly disruptions in energy, transportation and agricultural inputs can spread across global markets.
These previous shocks triggered sharp increases in energy prices, fertilizer shortages, and rising food costs, which disproportionately affected low-income countries.
It was pointed out that the disruption of the Strait of Hormuz highlights the fragility of global supply chains when vital maritime checkpoints are affected. With such a large share of global energy and fertilizer trade concentrated in one corridor, even temporary disruptions can reverberate across multiple sectors of the global economy.
UNCTAD says the recent disruption underscores the need for flexibility in global trade networks and the importance of protecting sea lanes that support the flow of energy, food and basic goods.
Founded in 1964, UNCTAD serves as the United Nations’ lead body for trade and development, supporting 195 Member States with economic analysis, policy advice and technical assistance aimed at promoting inclusive and sustainable development.