Guterres Warns of an 'Economic Earthquake': Global Growth Decline and Rising Inflation Due to the Strait of Hormuz Crisis
The Worst-Case Scenario: Stagnant Global Growth and Rampant Inflation
In a bleak outlook for the future of the economy, Guterres revealed that UN reports indicate that "even in the best-case scenarios," global growth will decline to 3.1%, with sharp price increases and inflation rates. This warning comes today, Thursday, coinciding with the ongoing naval blockade and military tensions led by Washington, which have disrupted supply chains and raised energy and shipping costs to unprecedented levels.
UN Plan to Evacuate Ships and Sailors from the 'Conflict Zone'
On the ground, the Secretary-General announced that work is currently underway to establish an international framework aimed at safely evacuating detained or stranded ships and sailors from the conflict zone, should security conditions allow. This step reflects the magnitude of the risks facing commercial navigation in the region, where strategic waters have turned into a "battleground" putting the lives of thousands of maritime workers at stake.
International Appeal to Open Waterways
Guterres's cry today, Thursday, serves as a wake-up call to the international community; while the Trump administration insists on using "naval blockade" as a pressure tool to force Iran to negotiate, the United Nations believes that the cost of this conflict will be borne by the people through rising prices and halted growth. The question remains: Will UN efforts succeed in neutralizing waterways from military conflict, or is the world indeed heading toward a prolonged economic recession?
