The worsening situation in the Middle East could pose a significant risk to global trade and development, Stephane Dujarric, spokesman for the UN Secretary-General warned on Tuesday as he cited a report released by the United Nations Trade and Development (UNCTAD).
Speaking at a regular briefing at the UN headquarters, Dujarric noted that the report, which analyzes the economic impact of a potential closure of the Strait of Hormuz, warns of significant impacts on global energy and food markets.
The Strait of Hormuz is a vital passage that carries about one-quarter of global seaborne oil trade, along with significant volumes of liquefied natural gas and fertilizers.
According to the report, the recent escalation in regional tensions has disrupted energy transportation, leading to a rise in global oil prices and a sharp decline in vessel traffic through the Strait of Hormuz, which is now grounding to a halt.
"The report underscores that the Strait of Hormuz is a critical maritime checkpoint. Since Feb 28, according to UNCTAD, ship traffic through the Strait of Hormuz has dropped by 97 percent," said Dujarric.
The UN report warns that surging costs for energy, fertilizer, and transport threaten to drive up food prices and worsen the global cost-of-living crisis, hitting the world's most vulnerable people the hardest. The report also stressed that the final economic toll will hinge on how long and how severely the disruptions last.
The current crisis erupted on Feb 28 when the United States and Israel launched large-scale joint airstrikes on Iran. The Iranian side has responded with multiple waves of missile and drone attacks targeting Israel and U.S. assets across the region, hitting many countries in the Gulf.
Middle East situation may pose significant risk to global trade, development: UN spokesman
Middle East situation may pose significant risk to global trade, development: UN spokesman
Middle East situation may pose significant risk to global trade, development: UN spokesman
Serbia's Agriculture Minister Dragan Glamocic hailed the surge in exports to China following the launch of a landmark free trade agreement (FTA) in recent years, calling the pact a strategic relationship of mutual vision and voicing optimism for deeper bilateral cooperation.
The FTA between China and Serbia, signed in October 2023 and implemented on July 1, 2024, eliminates tariffs on roughly 90 percent of bilateral trade. More than 60 percent of goods became duty-free immediately upon its entry into force, marking a decisive step in deepening economic ties.
He said the agreement has reshaped Serbia’s trade profile, fueling a 69-percent jump in agricultural exports while accelerating imports of Chinese technologies and farm mechanization.
"The relationship between the People's Republic of China and the Republic of Serbia, I would describe as a long-term, strategic relationship of mutual political and clear economic vision.The Free Trade Agreement between our countries was signed in 2023. It was introduced in 2024. As a result, our trade exchange has greatly improved, especially in the field of agriculture. We can say from that moment our exports to China grew for 69 percent. We have also made easier the import of certain things, such as mechanization and digital technologies, from the People's Republic of China to Serbia," said Glamocic.
"Our traditional products, such as wine, our domestic brandy, our honey, dried plums, frozen raspberries, similarly, imports of modern technologies from China are increasing, mechanization also, which really improves our agriculture business in Serbia. So I am an optimist that it will get better and better every day," he added.
The minister spoke highly of Serbia's partnership with China and voiced hope for broader cooperation in the future.
"What I would expect from China is that we sometimes try to speed up these procedures as much as possible. It is especially an honor for us when such a small country has such a status in the People's Republic of China. We were the first country to sign this type of strategic document in Europe, and we have reached the highest possible level among the two countries," he said.
Serbian agriculture minister reports record export growth to China
