The United Nations has issued a grim warning about the costs to the Asia-Pacific region of a prolonged conflict in Iran, forecasting job losses, crippling inflation and food insecurity, with the poorest nations brutally exposed to the oil shock and millions of informal workers facing the body blow of rising transport costs.
More than 8 million people across the Asia-Pacific could be plunged into poverty if the crisis that closed the Strait of Hormuz drags on, according to a study published on Tuesday by the UN Development Programme (UNDP).
The report also warned that the conflict could drain up to US$299 billion from the region’s gross domestic product, with government budgets stretched to subsidise rising costs.
Fertiliser shortages are a particular concern for agrarian economies as Middle Eastern urea fails to pass the Strait of Hormuz, threatening Asian grain supplies and creating a domino effect on food costs.
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