Crisis in the Strait of Hormuz increases global risk

The International Energy Agency, the International Monetary Fund, the World Bank Group, and the World Trade Organization, which are influential worldwide, held a joint assessment meeting on Thursday due to the ongoing conflicts in the Middle East and the extraordinary situation in the Strait of Hormuz. In a statement released after the meeting, the leaders of these institutions emphasized that the congestion in energy shipping routes, in particular, poses an increasing threat.

Pointing out that many oil shipments have been interrupted due to the ongoing blockade in the Strait of Hormuz, the statement noted that this situation could lead to a rapid depletion of stocks at a time when oil demand is expected to peak with the approach of summer in the Northern Hemisphere. The officials expressed their consensus that such supply shortages would jeopardize not only fuel security but also financial markets and global economic stability.

Additionally, it was underlined that if the current shipping problems are not resolved in the short term, fluctuations in fuel prices and the existing fragility in the supply chain could deepen further.

The global institutions emphasized that international cooperation must be further strengthened in the coming period in the face of the ongoing crisis. In this context, it was reported that options for how multilateral and bilateral support mechanisms could be developed and implemented were being evaluated.

At the end of the statement, it was noted that developments would be closely monitored and that additional measures would be implemented rapidly if necessary. Global markets, meanwhile, were warned to remain alert to the course of developments in the region.

News Source: 12punto