In its report, titled “Strait of Hormuz Disruptions: Beyond Reopening — Lasting Impacts on Vulnerable Economies,” UNCTAD said maritime traffic through the strategic waterway remained stable during the first two months of 2026 before collapsing after the conflict involving the United States, Israel and Iran began on Feb. 28.

The agency said shipping activity started recovering after a ceasefire agreement between Washington and Tehran, which included the reopening of the Strait of Hormuz, was announced in mid-June. Even expectations that the waterway would resume normal operations helped ease benchmark crude oil prices across Europe, North America, the Middle East and Russia, it added.

Despite the improvement in oil markets, UNCTAD said recovery across broader supply chains remained uneven. Freight costs for grain and oilseed shipments continued to remain significantly above pre-conflict levels, indicating that disruptions to global logistics would persist even after maritime traffic resumed.

The report said the interruption of shipping through one of the world’s most important corridors for oil, liquefied natural gas and fertilizer exports triggered a broader chain reaction throughout the global economy. Higher energy prices increased transportation costs, contributed to inflationary pressures, raised agricultural production expenses and ultimately pushed food prices higher, disproportionately affecting low-income populations.

UNCTAD identified least-developed countries and small island developing states as the most exposed to these shocks because many rely heavily on imports of both fuel and food. The agency said numerous countries face dual vulnerability as net importers of oil and cereal products, leaving them particularly sensitive to fluctuations in international commodity prices.

Among small island developing states, oil imports account for as much as one-quarter of gross domestic product in some economies, according to the report. For least-developed countries, cereal imports represent a significant financial burden, with Yemen, Kiribati and Lesotho recording the largest shares of gross domestic product devoted to net cereal imports.

The report said these economies possess limited capacity to absorb external shocks because of constrained public finances, high debt-servicing obligations, exchange-rate vulnerabilities, declining remittance flows and reduced international development assistance. Those factors collectively weaken governments’ ability to shield households from rising living costs.

UNCTAD also said the relationship between energy prices and inflation has strengthened since the COVID-19 pandemic. According to the agency, a one percent increase in energy prices now produces larger and longer-lasting effects on consumer inflation than before the pandemic, reflecting more persistent transmission through global supply chains.

The report noted that food-price inflation in developing economies has continued to rise even after the underlying shocks affecting energy and grain markets began to ease, a pattern observed again during the recent conflict involving Iran.

Highlighting the humanitarian implications, UNCTAD cited research involving 1.27 million preschool children across 44 developing countries that found a five percent increase in real food prices was associated with an 11 percent rise in the risk of child wasting among children younger than five years. The risk increased to 15 percent for infants under one year, 26 percent among poor children and 9 percent for children living in poor, landless rural households.

The agency said normalization of international trade would require time because shipping networks and supply chains generally recover more slowly than commodity prices. It also warned that global food production risks remain elevated amid forecasts of a strong El Niño weather pattern later this year.

UNCTAD called for stronger international financial support for vulnerable economies, including measures to strengthen resilience through diversified trade sources and policies tailored to countries facing severe fiscal and debt constraints.

UN Secretary-General António Guterres, quoted in the report, said the economic consequences of the disruption would continue to be felt for months, with developing countries bearing the greatest burden. He urged all parties to uphold the ceasefire agreement and continue efforts to preserve regional stability.

Parmelin, who also serves as Switzerland’s economy minister, will visit the United States as part of a broader North American tour running from June 29 to July 9 that will also include stops in Canada and Mexico.

The visit comes as Bern works to convert a preliminary tariff arrangement reached with Washington into a formal agreement. Switzerland faced the highest U.S. tariff rates in Europe last year after the Trump administration imposed a 39% duty on Swiss imports.

In November, the two sides reached an initial accord that reduced the tariff rate to 15%, bringing it into line with the level applied to the European Union. Swiss officials have since been engaged in negotiations aimed at securing a long-term framework for bilateral trade.

The discussions are expected to focus on market access, tariff certainty and broader economic cooperation between the two countries. The United States remains one of Switzerland’s most important export destinations, particularly for pharmaceuticals, precision manufacturing and financial services.

Parmelin’s North American trip will also include attendance at Switzerland’s FIFA World Cup match in Vancouver on July 2, according to the Swiss economy ministry.

Following his engagements in the United States and Canada, Parmelin will travel to Mexico, where he is scheduled to hold talks with President Claudia Sheinbaum and senior government ministers.

Swiss officials said one of the country’s medium-term trade objectives is the modernization of the free trade agreement between Mexico and the European Free Trade Association (EFTA), which has been in force for approximately 25 years.

Switzerland is the largest economy within EFTA, whose members also include Norway, Iceland and Liechtenstein. The bloc has increasingly sought to update existing trade agreements to reflect changes in global commerce, digital trade and investment flows.

The outcome of Parmelin’s meetings in Washington could prove significant for Swiss exporters seeking greater certainty in the U.S. market amid continuing shifts in global trade policy and tariff frameworks.

Speaking at a meeting of Gulf Cooperation Council (GCC) foreign ministers in Bahrain, Rubio said that international waterways must remain accessible to all nations and should not be subject to unilateral charges by countries located along strategic maritime routes.

“If we accept that a country can charge vessels for using an international waterway simply because it lies near its territorial waters, the practice could spread throughout the world like a contagion,” Rubio said. He cautioned that such a development could create widespread disruption to global trade and maritime transport.

The remarks come amid ongoing diplomatic efforts between the United States and Iran following a memorandum of understanding signed last week that ended the recent Middle East conflict and reopened the Strait of Hormuz to commercial shipping.

Rubio emphasized that Washington remains committed to reaching a durable peace agreement with Tehran but stressed that any deal must be credible, enforceable and verifiable.

“While we want a deal, we do not want a deal at any price,” he said. “We want a deal that is good, real, verifiable and adhered to.”

During his regional tour, which has included visits to the United Arab Emirates, Kuwait and Bahrain, Rubio also sought to reassure Gulf allies that their security concerns would remain central to US diplomacy.

He pledged that no aspect of a future US-Iran agreement would compromise the security, stability or economic interests of Gulf nations.

The Strait of Hormuz remains one of the world’s most strategically important maritime chokepoints, carrying a significant share of global oil and liquefied natural gas exports. Any restrictions, fees or disruptions in the waterway could have major consequences for international energy markets and global commerce.

Rubio’s comments reflect growing concern among Gulf states and major energy-importing nations about maintaining freedom of navigation through one of the world’s busiest shipping corridors.

S President Donald Trump is expected to meet Egyptian President Abdel Fattah El-Sisi on the sidelines of the G7 summit in France this week, with discussions set to focus on geopolitical crises and their impact on trade, energy and global supply chains, Egypt’s presidency said on Sunday.

The Egyptian presidency said El-Sisi would hold several meetings with world leaders during the summit, including a bilateral meeting with Trump.

The talks will take place as leaders gather in Evian from June 15 to 17 for a summit hosted by French President Emmanuel Macron, with the Middle East conflict among the main issues on the agenda.

The French presidency said Macron had invited leaders from Egypt, Saudi Arabia, Qatar and the United Arab Emirates to discuss regional developments linked to the war in the Middle East.

The G7 meeting comes after the United States and Israel launched a war against Iran in late February, escalating tensions in the region and increasing pressure on international energy routes.

Egyptian officials said El-Sisi’s meetings would address efforts to resolve international crises and manage their economic consequences, including disruptions affecting trade flows, energy markets and supply chains.

Saudi Crown Prince Mohammed bin Salman will not attend the summit because of prior commitments, according to the Saudi Press Agency.

The G7 includes leaders from Britain, Canada, France, Germany, Italy, Japan and the United States, along with invited representatives from countries including Brazil and India.

Macron was scheduled to arrive in Evian on Sunday evening, while Trump and other leaders were expected on Monday.

The summit agenda includes discussions on ending the Iran conflict and reopening the Strait of Hormuz, a major global shipping route affected by regional tensions

The ministry said it summoned US Deputy Chief of Mission Jason Meeks to lodge “a strong protest” over what it called continuing attacks by US naval forces on commercial vessels carrying Indian mariners.The attacks had resulted in the “tragic and avoidable loss of three Indian lives,” the ministry said in a statement.

Meeks was first summoned on Wednesday after a US strike hit the Palau-flagged tanker MT Settebello off the coast of Oman, killing three Indian crew members.The incident followed a June 8 strike on another Palau-flagged tanker, MT Marivex, from which Omani authorities rescued 24 Indian sailors.

On Thursday, a Guinea-Bissau-flagged tanker was also hit in a US strike, according to Indian officials. New Delhi said the vessel’s crew, including 20 Indian sailors, were rescued.A US State Department official said Washington was in direct contact with the Indian government regarding the matter.

India is among the world’s largest sources of merchant seafarers, with more than 320,000 active sailors in 2025, according to the country’s shipping ministry.The shipping ministry has advised Indian sailors operating on Indian and foreign-flagged vessels travelling through conflict-affected waters to exercise the highest degree of caution.

“The continuing attacks on shipping in the region are deeply worrisome,” Indian foreign ministry spokesman Randhir Jaiswal said, adding that such attacks must stop.India’s navy said on Thursday it had conducted a high-risk operation to remove an unexploded missile warhead from the Marshall Islands-flagged tanker MT Olympic Life after it was struck off Oman on May 26.The vessel later reached India’s southern port of Kochi safely.

The navy said the projectile had entered the hull, passed through several structural compartments and became lodged inside a fuel tank.Shipping routes through the Strait of Hormuz have faced disruption since Iran restricted maritime traffic after attacks by the United States and Israel began on February 28. The United States has also imposed a naval blockade on Iranian ports.

The history of global commerce is often told through the rise of empires, trade routes and financial institutions. Less frequently discussed is the role of language in shaping those systems.

Historical accounts cited in the source material describe how Arabic commercial terminology and business practices became closely associated with trade networks that stretched across large parts of Asia, Africa and the Mediterranean during the medieval period.

According to the source material, Baghdad was regarded as one of the world’s wealthiest cities around 800 AD, with prosperity linked not to natural resources or military expansion but to its position as a major center of trade. Commerce occupied a central place in economic life, reflected in the Arabic term “tijara” (تجارة), meaning trade or the exchange of goods and services.

Merchants operating across long distances relied on extensive commercial relationships that connected producers, traders and consumers across multiple regions.The source material argues that Arab merchants developed systems based on trust, referred to by the Arabic word “amana” (أمانة). In its commercial sense, the term denotes the safeguarding of another person’s property or wealth and the expectation that obligations will be honored.

Such principles played a role in facilitating transactions among merchants operating across vast geographic distances, often in environments where modern regulatory institutions did not yet exist.These trust-based arrangements helped support increasingly sophisticated commercial practices.

Merchants exchanged goods, extended credit and conducted transactions across territories that spanned multiple political jurisdictions. The source material characterizes these mechanisms as an early form of banking, built around commercial confidence and merchant networks rather than modern financial institutions.

The development of written financial instruments represented another significant advancement. The Arabic word “sakk” (صكّ), described in the source material as a written payment order or financial document, became associated with methods of transferring value without requiring the physical movement of currency.

Historians have frequently noted linguistic links between the Arabic term and the English word “cheque,” reflecting the influence of medieval commercial interactions on later financial terminology.The spread of trade also facilitated the movement of language.

Commercial exchanges carried words, ideas and technologies between societies, leaving traces that remain visible in modern vocabulary. The source material identifies several commonly used English words including “tariff,” “magazine,” “cotton,” “algebra” and “alcohol” as having Arabic linguistic origins. These examples illustrate how economic and cultural interactions can shape language over centuries.

The commercial environment described in the source material was supported not only by institutions and terminology but also by values associated with enterprise and economic activity. One such concept is “himma” (هِمَّة), defined as determination, ambition and the willingness to pursue long-term goals.

The term is presented as a cultural expression of persistence and entrepreneurial drive, qualities frequently associated with successful commercial activity.While the historical influence of Arabic commercial practices forms one part of the narrative, the source material also highlights the contemporary economic significance of the Arab world. It states that Arab countries collectively account for approximately $3 trillion in sovereign wealth assets.

Sovereign wealth funds have become major participants in global capital markets, investing across sectors ranging from infrastructure and technology to energy and real estate.The source material further notes that the Arab world comprises 22 countries with a combined population of approximately 420 million people.

Together, these states represent a significant economic and demographic bloc spanning the Middle East and North Africa. Their geographic position continues to place them at the intersection of major global trade routes linking Asia, Europe and Africa.Arabic remains an important language of business across much of the region.

According to the source material, many commercial negotiations and business relationships continue to begin in Arabic, reflecting both cultural continuity and the practical realities of operating in local markets. Language can serve not only as a means of communication but also as a tool for building trust, understanding business norms and navigating regulatory and commercial environments.

The source material points to major commercial centers including Dubai, Riyadh, Cairo and Doha as examples of cities that have emerged as influential hubs for investment, trade and regional business activity. These urban centers have attracted multinational corporations, investors and entrepreneurs seeking access to markets across the Middle East and North Africa.

The concept of opportunity is represented through another Arabic term highlighted in the source material: “fursa” (فرصة), meaning opportunity. The term is used to describe openings that may be time-sensitive and require action before circumstances change.

Within the context of regional economic development, the source material presents Arabic language skills as increasingly relevant for individuals and businesses seeking to engage with rapidly expanding markets.The argument advanced by the source material is that the significance of Arabic extends beyond cultural or religious contexts.

It suggests that the language has historically functioned as a vehicle for commerce, finance and economic exchange, contributing terminology and concepts that became embedded within broader global systems. From trade agreements and financial instruments to commercial vocabulary and business practices, Arabic linguistic influence has persisted across centuries of economic interaction.

The relationship between language and commerce remains evident today. As Gulf sovereign wealth funds deploy capital globally and regional cities compete to attract investment, knowledge of local languages and commercial traditions continues to carry strategic value.

The source material contends that success in these markets depends not solely on technical expertise or financial resources but also on understanding the cultural and linguistic frameworks that underpin business relationships.

Viewed through this lens, the story of Arabic commerce is not simply a historical account of medieval trade networks. It is also a reflection of how language can shape institutions, facilitate trust and support economic activity across generations. The commercial concepts highlighted in the source material trade, trust, financial documentation, ambition and opportunity remain closely connected to the functioning of markets, both past and present.

The June 15-17 summit will be held in Évian-les-Bains in southeastern France, with Syrian representation expected to focus on regional trade routes, supply chains and post-war economic reconstruction, according to the sources.

One Syrian official said an invitation for Sharaa was hand-delivered earlier this week to Syrian Finance Minister Yisr Barnieh during G7-related financial meetings in Paris.

The official said Syria’s participation would likely center on the country’s potential role as a “strategic hub for supply chains” following disruptions caused by the closure of the Strait of Hormuz.
Commercial shipping through the critical waterway has been severely affected since the outbreak of the Iran conflict in late February, contributing to volatility in global energy and transport markets.

Syria, seeking to rebuild after a 14-year civil war, has increasingly moved closer to Western governments following shifts in regional diplomacy and gradual easing of sanctions imposed during the rule of former presidents Hafez al-Assad and Bashar al-Assad.

Despite the easing of many restrictions, Syrian officials continue to face challenges attracting foreign investment, restoring banking connectivity and reviving infrastructure damaged during years of conflict.

The invitation signals a significant diplomatic development for Damascus as Western powers reassess Syria’s regional role amid broader geopolitical and economic disruptions linked to the Middle East conflict.

Negotiators from the European Parliament and EU member states concluded overnight talks on measures needed to enforce the agreement reached last year between Washington and Brussels.

The trade accord, negotiated in July 2025 between Trump and European Commission President Ursula von der Leyen in Turnberry, Scotland, set tariffs on most European exports to the United States at 15 percent while requiring the EU to eliminate duties on many US imports.

Implementation had stalled for months amid political disagreements inside the bloc and concerns over Trump’s broader trade policies.Von der Leyen welcomed Wednesday’s breakthrough, saying the agreement would allow the EU to fulfill its obligations under the transatlantic trade framework.

“Together, we can ensure stable, predictable, balanced, and mutually beneficial transatlantic trade,” she said in a statement posted on social media.Trump had warned the EU it faced significantly higher tariffs if the agreement was not ratified by early July and had previously threatened to raise duties on European automobiles and trucks from 15 percent to 25 percent.

The dispute had intensified pressure on Brussels to secure stability in trade relations with Washington, its largest economic partner, with annual transatlantic trade valued at roughly 1.6 trillion euros ($1.9 trillion).

The final agreement includes safeguards allowing the European Commission to suspend favorable tariff arrangements if the United States violates the deal or targets EU businesses through discriminatory trade actions.

EU negotiators also secured provisions enabling Brussels to respond if surges in US imports threaten domestic European industries.However, lawmakers softened several earlier demands opposed by Washington, including provisions that would have required the United States to immediately remove tariffs above 15 percent on steel components before EU measures took effect.

The finalized text also removed a proposed “sunrise clause” that would have delayed implementation until Washington fully complied with all commitments.A separate “sunset clause” was extended until the end of 2029, postponing the need for renegotiation or renewal of the arrangement.

Bernd Lange, who led negotiations within parliament, said lawmakers had succeeded in securing safeguards protecting European interests.But Anna Cavazzini criticized the compromise, saying the agreement still placed the EU at a disadvantage despite helping stabilize trade tensions.

The accord comes after more than a year of transatlantic trade disputes triggered by Trump’s tariff policies on steel, aluminum, vehicles and industrial goods.

In a joint statement issued after meetings in Paris, the G7 officials said it was “imperative” to restore normal transit through the strategic waterway, which handles a substantial share of global oil and liquefied natural gas shipments.

The statement was released following discussions among finance chiefs from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as tensions linked to the Middle East conflict continue to disrupt international trade and energy flows.

The ministers also emphasized the need to address widening global current account imbalances and reaffirmed their commitment to multilateral coordination in responding to threats facing the world economy.

The G7 warned against arbitrary export restrictions and stressed the importance of maintaining stable and predictable energy markets at a time of heightened geopolitical uncertainty and supply chain volatility.

The Strait of Hormuz, located between Iran and Oman, remains one of the world’s most strategically significant maritime chokepoints. Any disruption to traffic through the corridor can have immediate consequences for oil prices, shipping costs and inflationary pressures across major economies.

The latest G7 statement reflects growing international concern over the economic fallout from escalating regional tensions and the broader impact on global trade, energy security and financial markets.

The report by Iran’s Fars news agency came hours after Donald Trump and Chinese President Xi Jinping agreed during summit talks in Beijing that the Strait of Hormuz should remain open to ensure uninterrupted global energy supplies.

According to Fars, citing an informed source, the arrangement followed requests from China’s foreign minister and ambassador to Tehran. Iran subsequently agreed to facilitate the passage of a number of Chinese-linked vessels within what the report described as the framework of the two countries’ strategic partnership.

The report did not specify how many ships would be permitted to transit or whether broader restrictions on international shipping remained in place.Iran sharply tightened controls over movement through the Strait following the start of US and Israeli strikes on Feb. 28, significantly disrupting maritime traffic through one of the world’s most important energy corridors.

The situation worsened after a US blockade on Iranian ports began shortly after a ceasefire agreement reached in early April, prolonging instability across the Gulf region and affecting shipping routes responsible for roughly one-fifth of global oil and natural gas flows.It remained unclear how significantly the latest arrangement would alter maritime operations in practice.

During the conflict, Iranian authorities had already indicated that vessels considered neutral particularly those linked to China — could pass through the Strait if they coordinated movements with Iranian military forces.

Ship-tracking data showed that a Chinese supertanker carrying around 2 million barrels of Iraqi crude successfully passed through the Strait on Wednesday after being stranded in Gulf waters for more than two months due to the conflict.

The renewed movement of Chinese vessels through Hormuz highlights Beijing’s growing diplomatic and economic engagement in Gulf security issues as disruptions in the region continue to fuel volatility in global energy markets.