New Delhi, May 1: United Nations Secretary-General Antonio Guterres has stated that disruptions to safe shipping in the Strait of Hormuz are having a severe impact on the global economy. This sentiment is echoed by Singapore’s Prime Minister and the European Union.
In a social media post, Guterres noted that the blockade in this crucial waterway is affecting “energy, transportation, manufacturing, and food markets,” leading to a “stifling” of the global economy.
He expressed deep concern over the Middle East crisis, stating, “Conditions are worsening with each passing hour.” Guterres called for all parties to exercise restraint and seek solutions through dialogue, emphasizing the need for resolutions that can pull us back from this perilous situation.
The Strait of Hormuz is one of the world’s most vital oil routes, through which a significant portion of global oil supply passes. Any disruption here could have widespread repercussions on international markets and supply chains.
Singapore’s Prime Minister Lawrence Wong and the European Union have also expressed their concerns. EU foreign policy chief Kaia Kalas remarked that the escalating tensions in Hormuz do not appear to be easing. She added that the situation is now affecting the global economy, noting that Russia may benefit from these circumstances.
Wong warned that the ongoing conflict with Iran is likely to slow economic growth in Singapore this year. In his May Day address, he stated that there is no expectation for a quick end to the war, and conditions may worsen in the coming months.
He said, “We will be affected because we are heavily reliant on energy and other essential supplies from the Gulf.”
Wong cautioned that inflation will rise globally, impacting everything from energy to food and other necessities. Some countries may face recession, which could directly affect Singapore. He warned that even if the Strait of Hormuz reopens, normalcy will not return immediately.
He added, “Ports and energy infrastructure have been damaged. Shipping lanes will need to be cleared of mines.”
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