The World Trade Organization's latest report warns that the spillover effects of the conflict between the United States, Israel, and Iran could cause global trade to slow down more than previously expected in 2026. The WTO had originally predicted that global trade growth would drop sharply from 4.6% in the previous year to 1.9%. If oil and gas prices remain high, this growth rate could fall another 0.5 percentage points. The report points out that the risks are no longer only reflected in the surge of crude oil and liquefied natural gas prices. Tensions in the Strait of Hormuz are disrupting travel, transportation, and other service trade, and adding extra pressure to global food supply chains. The WTO specifically mentions that about one-third of global fertilizer exports are normally transported through the Strait of Hormuz. The current blockade has affected the supply of this key agricultural input, potentially further increasing food costs and exacerbating global trade pressures.
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Original article: toutiao.com/article/1860159610202185/
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