Hormuz shipping disruptions worsen global trade instability, ITC warns

The International Trade Centre has warned that disruptions to shipping through the Strait of Hormuz are impacting global trade, noting a decline in exports of 12 strategic products as economic repercussions extend to energy, transport, insurance, and production costs.

The Centre—which is a joint agency of the World Trade Organization and the United Nations Conference on Trade and Development—explained that trade data for April 2026 showed a 95% drop in liquefied natural gas exports and an 83% decrease in urea fertilizer exports.

The report indicated that recent periods of calm in the Middle East conflict had raised hopes for a full resumption of shipping, but traffic remains well below normal levels, with the timing and conditions for a sustainable reopening still uncertain.

It noted that Japan, which previously sourced 91% of its crude oil imports from economies reliant on the Strait of Hormuz, recorded a 64% decline in total imports in April.

The Centre stated that the economic impact of the disruption goes beyond cargo shipments, encompassing higher energy prices, shipping rates, marine fuel costs, and insurance premiums, all of which are driving up production and transportation expenses.

It reported that rerouting vessels to alternative paths is leading to longer delivery times, congestion at ports, and pressure on other transit routes, with these strains ultimately being reflected in consumer prices.

The Centre warned that rising fertilizer costs could affect agricultural output and food prices, especially in vulnerable, import-dependent economies.

It stressed that the disruption of navigation through the Strait of Hormuz has exposed the fragility of global supplies of energy, fertilizers, and industrial inputs, and the extent of their reliance on a single maritime corridor.