GECF Warns of Economic Fallout from Iran Conflict, Citing Strait of Hormuz Disruption

According to the International Desk of Webangah News Agency, the Secretary-General of the Gas Exporting Countries Forum (GECF), Philip M. Shilabe, has emphasized a critical gas situation in the Middle East. Shilabe stated that the closure of the Strait of Hormuz has led to roughly 20% of the liquefied natural gas (LNG) supply being removed from the market. Speaking at the St. Petersburg International Economic Forum (SPIEF), he indicated that the overall market situation for the current year is contingent upon the reopening of the Strait of Hormuz. Projections suggest a potential reduction in gas supply ranging from 1.7% to 4.1% by the end of the year, a figure directly tied to the operational status of this vital waterway.

Shilabe further noted that the impact of this disruption extends beyond natural gas and LNG, affecting the supply of helium and chemical fertilizers as well. This cascading effect is poised to disproportionately impact developing countries. He added that the current year is anticipated to be particularly challenging due to diminished agricultural output in numerous nations, with the economic consequences expected to be widespread and pervasive.