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Reopening Strait of Hormuz won’t end economic shock — UN

According to UNCTAD, reopening the strait is a "necessary but insufficient" condition for restoring trade, as supply chains require time to adjust

GENEVA, June 30. /TASS/. The gradual resumption of shipping through the Strait of Hormuz does not mean the end of the economic shock for the global economy, as the impact of the crisis on transport and food systems will be felt much longer than on energy markets, a report on the situation around the Strait of Hormuz published by the United Nations Conference on Trade and Development (UNCTAD) stated.

"The first point is that the shock does not end with the reopening [of Hormuz], no matter what the headlines say," said UNCTAD spokesman Marcelo Risi, who presented the report at a briefing in Geneva.

According to him, reopening the strait is a "necessary but insufficient" condition for restoring trade, as supply chains require time to adjust, and shipping rates and prices remain stagnant.

According to the organization's report, 61 economies dependent on both oil and grain imports remain the most vulnerable. These include 35 of the least developed countries and 26 small island developing nations. For these countries, continued high costs for fuel, shipping, and food will put additional pressure on public finances and household budgets.

Earlier, Ali Bahraini, Permanent Representative of the Islamic Republic to the UN in Geneva, confirmed the opening of the Strait of Hormuz for commercial vessels and international shipping.