Hormuz shipping disruptions raise risks for energy, fertilizers, vulnerable economies – UNCTAD
Orisemeke benjamin
UN Trade and Development (UNCTAD) have said the Strait of Hormuz disruptions are taking its toll on the global energy markets.
Before the conflict/strike escalation, Brent crude (the global benchmark) was priced at around $73. Prices began jumping immediately after the initial U.S./Israeli strikes on Iran, with Brent briefly hitting $82+ and then surging higher amid retaliations, supply fears, and regional disruptions—eventually exceeding $100 (and peaking near $120 in early March 2026) before volatile pullbacks. As of today (March 12, 2026), Brent crude oil stood at $101 per barrel.
In a report titled: “Strait of Hormuz disruptions: Implications for global trade and development”, The UN agency noted that military escalation in the region has disrupted shipping flows through this narrow passage, raising concerns about ripple effects across energy markets, maritime transport and global supply chains.
The Strait carries around one quarter of global seaborne oil trade, as well as significant volumes of liquefied natural gas and fertilizers.
According to UNCTAD, in the report, “Freight rates for oil tankers and war risk insurance premiums are surging, while marine fuel costs are also rising, increasing shipping costs across supply chains.
“Around one third of global seaborne fertilizer trade (about 16m tonnes) passes through the Strait, raising concerns about fertilizer access for some of the poorest countries.
“Developing economies may be particularly exposed, as high debt burdens and rising borrowing costs limit their ability to absorb new price shocks.
The UN body said past crises – including COVID-19 and the war in Ukraine – showed how disruptions to energy, transport and agricultural inputs can quickly spread across interconnected markets.
