The United Nation’s Trade and Development body, UNCTAD, has released analysis expressing concerns the closure of the Strait of Hormuz may increase food costs and “intensify cost-of-living pressures”.
“Higher energy, fertiliser and transport costs may increase food costs and intensify cost-of-living pressures, particularly for the most vulnerable,” UNCTAD wrote in a new report published on Tuesday.
According to UNCTAD, 38 percent of crude oil globally passes through the Strait, as well as 29 percent of LPG and 19 percent of LNG.
One third of the fertilisers transported by ship globally also passes through the Strait, UNCTAD found.
The impact could be most felt in Asia, which is the destination for 84 percent of the products shipped through the Strait, according to UNCTAD.
Source: Al Jazeera
- Agencies
