World Trade Organization Director-General Ngozi Okonjo-Iweala has warned that prolonged disruption in the Strait of Hormuz could put severe pressure on global trade and raise food and fertiliser costs. She said the trading system has remained relatively resilient, but disruption at major maritime chokepoints is a serious test.
Shipping companies have kept cargo moving by using longer alternative routes, but the diversions are increasing transport costs. Higher energy prices can also feed into agricultural production and fertiliser costs, with import-dependent economies particularly exposed.
The WTO says trade in semiconductors and other products linked to artificial intelligence has helped support overall global commerce, although the gains remain concentrated in a limited number of regions.