UN Trade and Development UNCTAD says that Strait of Hormuz disruptions has started weakening developing country currencies.
UNCTAD, in its monitoring of changes in exchange rates against the dollar since the start of the military escalation (28 Feb 2026) till March 26, also said that the closure of the shipping line have started weakening global trade as total number of daily ship transits through the strait have dropped by 95 percent .
” Under normal conditions, it is one of the world’s most vital arteries of energy-related trade, accounting for a significant share of global oil and gas supplies – the foundation of much of what the world produces, trades and consumes,” said UNCTAD.
Soaring oil and gas prices have inflated the cost of living, squeezing the livelihoods of the most vulnerable.
Financial ramifications for developing countries include falling stock prices, weakening currencies, and rising cost of external debts.
