economy
Siluanov on the consequences of the situation in the Strait of Hormuz
The situation in the Strait of Hormuz has already led to an energy crisis in the world, the next step is an increase in the price of fertilizers and food, as well as the threat of a global economic recession... RIA Novosti, 05/13/2026
TL;DR
- The blockade or restriction of shipping in the Strait of Hormuz, which handles a fifth of global oil consumption and significant LNG, has triggered an energy crisis.
- The next consequences are expected to be price increases for fertilizers (already up 30%), leading to less affordable food, particularly critical for poorer African nations.
- Asian and European energy importers, along with the poorest African countries, are the main losers, while Gulf exporters also suffer infrastructure damage.
- Russia faces a mixed economic impact: increased export revenue and budget income, but also disrupted supply chains and higher logistics costs, weakening global economic growth and increasing inflation.
- The New Development Bank (NDB) aims to assist Global South countries in achieving economic and technological growth, self-sufficiency, and developing modern competencies.
- The escalation around Iran has led to the de facto blocking of the Strait of Hormuz, impacting global fuel and industrial product prices.