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by | May 1, 2026

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Hormuz Crisis Could Trigger Global Recession, says UN Secretary-General









United Nations Secretary-General Antonio Guterres issued a stark warning on Thursday about the escalating crisis in the Strait of Hormuz, cautioning that it could have devastating consequences for the global economy and millions of people worldwide.

In a press briefing, Guterres described the closure of the vital waterway as “strangling the global economy,” impeding the flow of essential commodities like oil, gas, and fertilizer. He emphasized that even a swift resolution to the crisis wouldn’t prevent significant economic fallout, with supply chains requiring months to recover, resulting in prolonged economic slowdown and price increases.

Guterres outlined three potential scenarios. Even in the most optimistic case, global growth would decline from 3.4% to 3.1%, inflation would rise to 4.4%, and trade would experience a sharp downturn.

A more severe scenario, involving continued disruptions from Iranian actions and the US blockade of Iranian ports through mid-year, would push an estimated 32 million people into poverty and leave 45 million more facing extreme hunger due to fertilizer shortages and reduced crop yields. This situation could erase years of development progress.

Guterres painted a dire picture of a worst-case scenario, where severe disruptions persist throughout the year. “We confront the spectre of a global recession with dramatic impacts on people, on the economy, and on political and social stability,” he stated. He stressed that these consequences would amplify over time, making the damage increasingly difficult to reverse.

The Secretary-General underscored ongoing diplomatic efforts to resolve the impasse in US-Iran talks, urging all parties to restore navigational rights and freedoms immediately. “My message to all parties is clear: Navigational rights and freedoms must be restored immediately,” Guterres said. “Open the Strait. Let all ships pass. Let the global economy breathe again.”

You May Like To Read: Global Markets on Edge as US-Iran Ceasefire Hits “Diplomatic Impasse”

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