United Nations Secretary-General António Guterres has issued an urgent plea for diplomacy as the week-old US-Israel war on Iran enters its seventh day with no sign of a ceasefire, warning that the escalating conflict poses a severe threat to the global economy and could rapidly spiral out of control.
In an official statement, Guterres said that the unlawful attacks in the Middle East and beyond are causing tremendous suffering and harm to civilians throughout the region and pose a grave risk to the global economy, particularly to the most vulnerable people. He warned that “the situation could spiral beyond anyone’s control,” and urged all parties to stop the fighting and move to serious diplomatic negotiations, saying “the stakes could not be higher.”
The economic alarm is grounded in hard data. Just nine oil tankers, cargo and container ships have been recorded passing through the Strait of Hormuz since hostilities began on February 28, according to MarineTraffic data analysed by AFP, a near-total collapse in traffic through a waterway that normally carries nearly 20 per cent of the world’s crude oil and about 20 per cent of its liquefied natural gas.
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The international benchmark Brent crude contract surged to $92.69 a barrel up 8.5 per cent on the day and nearly 30 per cent for the week, as markets priced in mounting fears of a prolonged supply disruption.
The UN warning was echoed by the International Monetary Fund. IMF Managing Director Kristalina Georgieva warned that a prolonged conflict could affect energy prices, market sentiment, economic growth and inflation, “placing new demands on the shoulders of policymakers everywhere.”
UN Relief Chief Tom Fletcher warned that the world is facing a moment of “grave peril,” lamenting that staggering sums were being directed toward warfare even as humanitarian aid budgets are cut. The UN High Commission for Human Rights declared the escalating crisis a major humanitarian emergency requiring an immediate regional response.
Meanwhile, Trump demanded Iran’s unconditional surrender as the only acceptable end to the war, in what analysts described as a significant expansion of US objectives beyond its initial stated aim of neutralising Iran’s missile programme and nuclear capabilities. The United States struck more than 3,000 targets in the first week of the conflict.