Closure of Strait of Hormuz would affect global economy, warns Greek shipping minister

ATHENS

The closure of the Strait of Hormuz, which is feared should armed tension escalate between Iran and Israel, would affect the global economy, Greece’s shipping minister warned on Friday.

Vassilis Kikilias noted the serious global economic implications should Iran close the sea passage.

“If the Strait of Hormuz is closed – which is the worst-case scenario – it will affect the entire global economy, not just shipping,” he told SKAI TV.

Nearly 90% of global trade depends on maritime routes and rerouting vessels around Africa to reach key destinations in Europe and the US would severely upset global supply chains, Kikilias explained.

Calling the current geopolitical landscape “very volatile,” he noted that oil prices already rose by 7% - 10% in recent days, owing to the armed tension between Iran and Israel.

Hostilities broke out last Friday when Israel launched airstrikes on several sites across Iran, including military and nuclear facilities, prompting Tehran to launch retaliatory strikes.

Israeli authorities said at least 25 people have been killed and hundreds injured since then in Iranian missile attacks.

The death toll in Iran has risen to at least 639, while more than 1,300 are wounded, according to reports.