UN: U.S.–Iran war cost Arab economies $150 billion in the first month alone

The war between the United States and Iran has cost Arab economies about $150 billion in its first month alone, a senior United Nations official said, describing the fallout as a heavy blow to the entire region.

Rania al-Mashat, executive secretary of the UN Economic and Social Commission for Western Asia (ESCWA), said the losses are equivalent to about 4 percent of the region’s gross domestic product. The remarks were made during an informal meeting of the UN Security Council on maritime security.

According to al-Mashat, threats to shipping in the Strait of Hormuz and Bab al-Mandeb are not only undermining security, but also trade, economic stability and access to essential goods. She noted that about 25 percent of the world’s seaborne oil trade and 19 percent of liquefied natural gas (LNG) trade pass through the Strait of Hormuz.

Gulf states, she added, are also major exporters of ammonia, chemical fertilizers, sulfur and aluminum — production directly affected by the blockade of maritime routes. Al-Mashat warned that the conflict risks delaying investment and economic diversification across the Arab world.

The UN official called for urgent efforts to prevent the war from expanding, to preserve freedom of navigation and to strengthen regional preparedness for further disruptions to essential goods and services.

Source: Al Jazeera — https://www.aljazeera.com/news/liveblog/