Hormuz Closure Poses Risk to Global Economy

(MENAFN) The potential shutdown of the Strait of Hormuz, a major concern amid rising military conflict between Iran and Israel, could have serious repercussions for the world economy, Greece’s Minister of Shipping cautioned on Friday.

Vassilis Kikilias emphasized the broad economic risks globally if Iran were to block the strategic waterway.

“If the Strait of Hormuz is closed – which is the worst-case scenario – it will affect the entire global economy, not just shipping,” he said during an interview with a news agency.

About 90 percent of international commerce relies on ocean shipping, and redirecting ships around Africa to reach major markets in Europe and the United States would significantly disrupt international logistics networks, Kikilias stated.

Describing the current geopolitical environment as “very volatile,”he pointed out that oil prices have already jumped by 7 percent to 10 percent recently, triggered by the military friction between Tehran and Tel Aviv.

The conflict began last Friday, when Israel carried out airstrikes targeting multiple Iranian locations, including defense and nuclear sites, which led to Iran launching counterattacks.

According to Israeli officials, at least 25 people have died and hundreds have been wounded due to Iranian missile assaults.

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