United Nations Conference on Trade and Development (UNCTAD) has linked fresh spikes in energy, maritime transport and food costs to the crisis in the Middle East.

UNCTAD warned that the escalating geopolitical tension around the Strait of Hormuz could strain public finances and increase pressure on household budgets in developing economies that depend on imported energy, fertilisers and staple food commodities.

The United Nations’ body stated that many developing countries, including Nigeria, were already facing high debt service burdens, limited fiscal space and constrained access to affordable financing, potentially heightening economic and social pressures and complicating progress toward sustainable development.

UNCTAD, yesterday, released an analysis titled: “Strait of Hormuz Disruptions – Implications for Global Trade and Development,” examining the implications of recent disruptions to maritime traffic in the Strait of Hormuz, one of the world’s most critical trade corridors and maritime chokepoints.

The global body stated that the ripple effects of the ongoing military escalation in the Strait of Hormuz, has led to higher energy, fertiliser and transport costs, including freight rates, bunker fuel prices and insurance premiums, which may increase food costs and intensify cost-of-living pressures, particularly for the most vulnerable countries.

According to the UNCTAD, the current shock comes at a time when many developing economies struggle to service their debt, face a tightening of fiscal space and limited capacity to absorb new price shocks.

Key findings from the analysis showed that energy markets reacted immediately, with Brent crude rising above US$90 per barrel, freight rates for oil tankers and war risk insurance premiums for vessels are surging, while marine fuel costs are also rising, increasing shipping costs across supply chains and adding to broader economic pressures.

MEANWHILE, the United Nations Secretary-General António Guterres has called on countries to accelerate their transition away from fossil fuels and invest in homegrown renewable energy, warning that decades of dependence on oil have left nations perpetually exposed to the volatility of global energy markets.

Guterres made the remarks on Monday via his verified account on X, formerly Twitter, as turmoil triggered by the ongoing United States-Israeli military campaign against Iran continued to send shockwaves through international oil markets and disrupt critical shipping routes.

The UN chief observed that past oil shocks left countries with little room to manoeuvre, forcing governments and economies to absorb the brunt of price surges without recourse. That constraint, he argued, no longer holds. Homegrown renewable energy, he said, had reached a point where it was more affordable, accessible and scalable than at any previous moment in history.

The statement comes amid acute disruption in global energy supply. The Strait of Hormuz, the world’s most strategically significant oil export corridor, linking major Gulf producers to the Gulf of Oman and the Arabian Sea, has been effectively shut down amid intensifying hostilities in the region.