The Strait of Hormuz remains practically closed.
Under normal conditions, it is one of the world’s most vital arteries of energy-related trade, accounting for a significant share of global oil and gas supplies – the foundation of much of what the world produces, trades and consumes.
Soaring oil and gas prices may inflate the cost of living, squeezing the livelihoods of the most vulnerable. Trade and growth are expected to slow in 2026. Financial ramifications for developing countries include falling stock prices, weakening currencies, and rising cost of external debt.
If the military escalation and disruptions persist, the suffering will extend far beyond the region, translating into widespread economic hardship.
At a moment of heightened fragility, de-escalation and the restoration of stability are essential.
- For a month, transit through the Strait has been at a near halt.
- Average during 1–27 February = 129
- Average during 1–29 March = 6
- This is a shock for global trade, which is expected to slow down.
- Fuel prices have skyrocketed and remain elevated.
- The cost of moving oil also keeps rising.
- When oil prices rise sharply, the cost of living follows.
- Rising geopolitical risk fuels global economic uncertainty.
- Global growth is likely to slow down from average of 3.4% to 2.6%
- Stock prices are in sharp decline.
- Currencies of developing countries started to weaken.
- Change in exchange rates against the US$, per cent since 27th Feb 2026
- Africa: 2.9 %
- Latin America & Caribbean: 2.3%
- Developing Asia & Oceania: 1.0%
- Change in exchange rates against the US$, per cent since 27th Feb 2026
- External borrowing costs are rising across the developing world.
- Increase in yields in % since 27th Feb 2026
- Africa: 0.64
- Latin America & Caribbean: 0.36
- Developing Asia & Oceania: 0.70
- Increase in yields in % since 27th Feb 2026