UAE warns unprecedented Hormuz tensions are destabilising commodity markets

Abu Dhabi: The UAE warned at the United Nations General Assembly’s Interactive Dialogue on Commodity Markets that escalating geopolitical tensions and disruptions to maritime trade routes were placing unprecedented pressure on global commodity markets, driving up transportation and insurance costs and destabilising supply chains.

In a statement delivered during the dialogue, the UAE said today’s commodity markets were facing mounting strain from geopolitical crises, supply chain disruptions, inflationary pressures and the accelerating effects of climate change, with developing countries bearing the heaviest consequences.

The UAE specifically warned that Iran’s “unlawful closure” of the Strait of Hormuz, which violates international law and the right to lawful transit passage, had intensified volatility across global markets.

“As one of the world’s most strategic maritime corridors, the Strait remains essential for the flow of energy supplies, as well as for the movement of critical commodities, including agricultural inputs indispensable to global food security and agricultural production,” the UAE said.

According to the statement, the disruption had led to higher shipping and insurance costs, strained global supply chains and contributed to sharp fluctuations in commodity prices.

The UAE noted that nitrogen fertiliser prices had surged by as much as 80 per cent, adding further pressure on food systems and worsening challenges for countries already facing food insecurity.

The country stressed that international waterways supporting the global economy “cannot be held hostage by one State”, calling for stronger maritime security, protection of freedom of navigation and the maintenance of open and resilient supply chains in accordance with international law and relevant UN Security Council resolutions.

The UAE also urged greater international cooperation to help developing countries manage price shocks, strengthen economic resilience and advance sustainable and inclusive development amid increasingly volatile global market conditions.