UN Chief Warns Global Recession as Middle East Crisis Enters Third Month

In a post on X, Guterres said, "The Middle East crisis is in its third month & the whole of humanity is paying the price."

He stressed that "all sides must refrain from actions that could undermine the ceasefire," while calling for "a peaceful, comprehensive, and durable resolution to the conflict."

Earlier on Thursday, United Nations Secretary General Antonio Guterres urged the reopening of the Strait of Hormuz, saying that the longer it is choked, "the higher the cost to humanity."

"My message is clear: Open the Strait. Let all ships pass. Let the global economy breathe again," he said.

The world may face the "spectre of a global recession" if the freedom of navigation through the Strait of Hormuz is not restored by the end of this year, UN chief Guterres told media personnel in New York.

In the scenario where "severe disruptions persist through the end of the year, inflation skyrockets past 6%, growth plummets to 2%, immense suffering takes hold, especially among the world's most vulnerable populations," the UN Secretary General said.

"And we confront the spectre of a global recession with dramatic impacts on people, on the economy, and on political and social stability," he said

"The longer this vital artery is choked, the harder it will be to reverse the damage," Guterres noted.

Setting out three possible trajectories, he said that even if restrictions on shipping and trade were lifted immediately, "supply chains will take months to recover," with global growth falling from 3.4 to 3.1 per cent, inflation rising to 4.4 per cent and trade slowing sharply.

"And a world still reeling from the shocks of a pandemic and the war in Ukraine will endure further economic distress. This is the best-case scenario," he said.

"The Middle East crisis is lumbering into its third month," Guterres told reporters at the news conference at UN headquarters in New York. "Despite a fragile ceasefire, the consequences grow dramatically worse with each passing hour."

He said he is "deeply concerned about the curtailment of navigational rights and freedoms in the area of the Strait of Hormuz," warning it is "impeding the delivery of oil, gas, fertilizer, and other critical commodities" and "strangling the global economy."

- ANI