Strait of Hormuz: Gradual re-opening is no quick fix for developing nations, UN warns
30 June 2026
Peace and SecurityRe-opening the Strait of Hormuz would bring vital relief for many economies, but developing countries will continue to grapple with increased food and fuel costs, according to a new UN report released on Tuesday.
Following the shaky ceasefire in the US and Israeli war with Iran, commercial shipping through the strait quickly began to rebound in mid-June, but has slowed in recent days as Washington and Tehran have exchanged strikes in the region.Iran has reportedly rejected an effort by France and Oman to remove mines from the strait and safeguard international trade as well as a suggestion by the UN’s International Maritime Organization (IMO) to open a new shipping lane off the coast of Oman.While the report from the UN Trade and Development agency (UNCTAD) expects oil shipments to recover, it warns that freight contracts, supply chains and food systems would take longer to adjust and that high food costs could contribute to acute malnutrition in developing countries.Vulnerable economies bear the bruntHigher energy prices fuel higher transport costs, agricultural costs and inflation, which increases food prices long after the initial shock, UNCTAD noted.
