IMF Worried Strait of Hormuz Blockade Could Trigger Global Supply Crisis

Washington (ANTARA) - The International Monetary Fund (IMF) is concerned about supply chain disruptions caused by the halt in traffic through the Strait of Hormuz, said IMF Managing Director Kristalina Georgieva on Wednesday.

“Yes, we are concerned about physical damage to supply chains. We have already seen, especially in Asia which is heavily reliant on imports from the Gulf, that there are shortages; not only of oil and gas, but also naphtha and helium,” Georgieva said in a briefing.

She added that the impact of these disruptions could increase in the coming weeks.

Georgieva also suggested that countries adopt energy-saving measures, such as making public transport free or encouraging remote work.

Regarding fuel supplies, Georgieva assessed that April will be a more difficult period than the previous month in terms of global fuel supply disruptions.

“We are very concerned about the impact of oil and gas supply disruptions; what we also realise is that March was a difficult month, but April may be even more difficult. Why? Because tankers that departed before 28 February have reached their destinations and no new shipments will be arriving,” Georgieva stated.

The escalation of the US-Iran conflict, which began with attacks at the end of February, has caused a de facto blockade of the Strait of Hormuz, the main shipping route for oil and liquefied natural gas from Persian Gulf countries to global markets.

This has also affected export activities and oil production in the region.

The US Navy, on Monday (13/4), began blockading all maritime traffic entering and exiting Iranian ports on both sides of the waterway.

Washington emphasised that non-Iranian vessels are free to cross the Strait of Hormuz as long as they do not pay entry fees to Tehran.

To date, Iranian authorities have not announced the imposition of entry fees but have discussed such plans.