Bahrain’s Foreign Minister Abdullatif Al Zayani, speaking as the president of the UN Security Council, warned that Iranian threats to shipping in the Strait of Hormuz have escalated into a global crisis. He emphasized that the closure of the strait poses a serious risk to the Global South, where populations will suffer the most from rising food prices and potential hunger. The Security Council’s Resolution 2817, co-sponsored by 136 nations, condemned Iran’s actions as illegal, yet Iran has not complied. If disruptions continue, the UN has projected that an additional 45 million people could face acute hunger worldwide. The regional economic impact could cost Arab economies up to $194 billion, with Iraq experiencing severe disruptions in trade and escalating prices for essential goods.
Why It Matters
The situation in the Strait of Hormuz is critical as it is a vital shipping route for oil and goods, with over 90% decline in tanker traffic noted since late February. Iraq, heavily reliant on imports from Iran for food and essentials, faces significant economic strain, with a projected loss of 3.7 to 6.0% of its GDP due to the conflict. The increase in customs duties and the collapse of Iraqi crude exports have exacerbated the economic crisis, pushing many families into deeper poverty. Historical tensions in the region further complicate the current crisis, as disruptions have long-term effects on food security and economic stability.
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