As both Washington and Tehran claim to control the critical commercial shipping route through the narrow Strait of Hormuz, UN agencies on Monday are calling for de-escalation amid the recent spike in strikes in the region related to the US-Iran war.
Attacks condemned
On the heels of the UN Secretary-General's call on Sunday for further US-Iran negotiations, the Council of the International Maritime Organization (IMO) condemned the latest attacks on civilian vessels in the strait - through which a fifth of oil and natural gas exports used to pass - and called for swift de-escalation on Monday, according to decisions made at the conclusion of its 137th session.
The council stressed in a separate resolution that the right of transit passage through straits used for international navigation should not be threatened, impeded, denied, hampered, impaired or suspended.
In addition, the IMO reiterated that any measures taken by coastal States to regulate traffic in vital shipping lanes should be done with accordance with IMO regulations under the International Convention on the Safety of Life at Sea .
Right of passage
With regards to the ongoing challenges facing international shipping in and around the Strait of Hormuz, the council stressed that any arrangement between the littoral States of the region shall guarantee the non-discriminatory and unimpeded right of transit passage of all ships, through the internationally recognised traffic separation scheme adopted by IMO in 1968.
In a social media post on Monday US President Donald Trump insisted that the strait will "remain open" and said Washington would reinstate its blockade of Iranian ports.
Taking a toll
He added that the US would begin to charge a 20 per cent fee on all goods passing through the waterway as its "guardian". He said the toll was necessary to provide "safety and security".
Iran's foreign minister countered with a post saying Mr. Trump was "absolutely right", but added that Iran would be charging a lower rate: "We will be fair," said Abbas Araghchi.
The IMO council reaffirmed in its earlier statement that passage through the Strait should remain free of any tolls and charges, in accordance with international law, including the IMO Convention , adopted in 1948.
It also requested the Secretary-General to explore options that advance safe maritime traffic and to work with littoral States, other Member States and the industry to ensure a coordinated and sustainable return to unhindered passage.
Shock and aftershock
Humanitarian and economic shocks have been felt for months in the Strait of Hormuz, according to the latest report from Switzerland-based ACAPS, independent specialists in humanitarian needs analysis and assessment, released on 10 July.
The near-continuous closure of strait since February has triggered a significant commodity price shock worldwide, according to the World Bank.
Global energy prices rose by 24 per cent following the conflict's onset, and fertiliser prices were projected in April to rise by more than 30 per cent in 2026, the World Bank found.
Price surges
The shock echoes the commodity price surge that followed the onset of Russia's invasion of Ukraine in 2022, which has continued to affect local economies several years after the recovery of energy markets, according to the UN trade agency, UNCTAD .
In Africa, its effects on the gross domestic product (GDP), food systems and public finances have persisted well beyond the initial price spike, risking long-term "scarring" effects on development progress, UNCTAD warned.
