Hormuz Strait almost at a standstill, increasing pressure on the global economy: UN

The strategically important Strait of Hormuz in the Middle East is currently practically blocked, which is putting major pressure on the global economy, the United Nations Conference on Trade and Development has said. This worrying picture has emerged in the organization's latest assessment report.

According to the report, shipping traffic in this major waterway for global energy trade has almost come to a standstill. While an average of about 130 ships were moving daily in February, it dropped to just six in March - a decrease of about 95 percent in one month.

UNCTAD says that due to this situation, global oil and natural gas supplies are being severely disrupted. This has a direct impact on industrial production, international trade and the consumption system. In addition, seaborne, air cargo and port-based supply systems are also under pressure.

The organization warned that if this impasse persists or worsens, energy prices could remain high for a long time. This will create the risk of permanent inflation worldwide.

The report notes that countries in South Asia and Europe, in particular, that are highly dependent on Middle Eastern energy, could face major economic risks.