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Renewed attacks on shipping in the Strait of Hormuz unsettled energy markets on Wednesday and prompted calls from the UN maritime agency, IMO, for \u201cmaximum restraint and de-escalation\u201d.<\/p>\nRenewed attacks on shipping in the Strait of Hormuz unsettled energy markets on Wednesday and prompted calls from the UN maritime agency, IMO, for \u201cmaximum restraint and de-escalation\u201d.<\/p>\n
Amid reports that three merchant vessels were hit along with Iranian targets, IMO Secretary-General Arsenio Dominguez condemned \u201creckless attacks\u201d<\/strong> in the past two days against several ships transiting the narrow waterway, a vital conduit for a significant proportion of the world\u2019s energy needs.<\/p>\n UN Secretary-General Ant\u00f3nio Guterres said the resumption of strikes and counterstrikes between the United States and Iran in the past 24 hours were \u201calarming\u201d and risked derailing diplomatic progress made since a ceasefire framework was agreed in April.<\/p>\n \u201cA return to full-scale hostilities would have catastrophic consequences for the peoples of the region, for international peace and security, and for the global economy as a whole<\/strong>,\u201d said UN Spokesperson St\u00e9phane Dujarric.<\/p>\n \u201cThese reckless attacks have again placed innocent seafarers in grave danger. No seafarer should have to risk their life simply for doing their job<\/strong>,\u201d Mr. Dominguez said, as he warned flag States, shipowners and operators not to expose seafarers to \u201cunnecessary danger\u201d by transiting the Strait.<\/p>\n Some 6,000 seafarers remain stranded in the channel on hundreds of vessels<\/strong> which used to transit at a rate of around 130 a day.<\/p>\n That number is vastly reduced today, although shipping levels picked up before the latest escalation, in line with an agreement on a temporary ceasefire \u2013 part of a memorandum of understanding \u2013 last month between the United States and Iran.<\/p>\n Responding to the latest escalation, the UN economic commission for Europe, UNECE, said that the already challenging situation for countries which rely on energy from the Gulf was set to continue<\/strong>, after more than 100 days of disruption.<\/p>\n \u201cWe can expect prices and price volatility to remain high and supply disruptions \u2013 especially in local markets \u2013 to continue for the months ahead<\/strong>,\u201d said Dario Liguti, Director of Energy, Housing and Land Management Division at the UN Economic Commission for Europe.<\/p>\n The senior UN economist explained that although a global shortage of fuel and fertilizers has been avoided, the effects of this year\u2019s disruption will still be felt \u201ceven if the situation normalizes rapidly\u201d<\/strong>. Strategic oil reserves are also at their lowest levels for decades, Mr. Liguti stressed.<\/p>\n \u201cIf the instability does continue, we should get ready for another rise in prices and a larger-scale raw material shortage<\/strong>,\u201d he told UN News.<\/p>\n A further complication compounding these shocks are this summer\u2019s extreme heatwaves, fuelled by a strong El Ni\u00f1o which is forecast to strengthen in the coming months and \u201cincrease energy consumption for cooling, impact energy infrastructure, and affect water availability for power plant cooling\u201d, Mr. Liguti explained<\/p>\n To counter these impacts \u2013 including on public transport networks \u2013 the UNECE official stressed the need to urgently build resilience to renewed energy shocks, to save energy through efficiency measures, reduce pressure on limited resources by cutting overall energy consumption and stock up on reserves.<\/p>\n \u201cLonger term, we are also seeing renewed interest in many countries in investing in domestic energy production and distribution capacity and renewables,\u201d Mr. Liguti noted.<\/p>\nHuge risk, warns Guterres<\/h2>\n
Why this matters:<\/h3>\n
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Heatwaves fuel uncertainty<\/h2>\n