US-Iran war cost Arab economies $150bn in first month: UN official

The war between the United States and Iran has cost Arab economies about $150bn in its first month alone, according to a senior United Nations official.

Rania al-Mashat, executive secretary of the UN Economic and Social Commission for Western Asia (ESCWA), said the losses were equivalent to about 4 percent of the region’s gross domestic product.

Speaking at an informal UN Security Council meeting on maritime security, al-Mashat said threats to navigation through the Strait of Hormuz and Bab al-Mandeb affected not only security but also trade, economic stability and access to essential goods.

She said about 25 percent of the world’s seaborne oil trade and 19 percent of liquefied natural gas trade pass through the Strait of Hormuz. Gulf states are also major exporters of ammonia, fertiliser, sulphur and aluminium.

Al-Mashat warned that the conflict could delay investment and economic diversification across the Arab world. She called for efforts to prevent the war from expanding, preserve freedom of navigation and strengthen regional preparedness for further disruptions to essential supplies and services, reports AL Jazeera.