Strait of Hormuz disruptions threaten 90% of global businesses, UN report warns

A report from the United Nations Conference on Trade and Development (UNCTAD) warns that maritime disruptions in the Strait of Hormuz pose a significant risk to 90% of the world's businesses. While all companies face challenges from such disruptions, micro, small, and medium enterprises (SMEs) are disproportionately vulnerable due to their limited ability to diversify suppliers, markets, and financing sources.

SMEs account for approximately 90% of global businesses, 70% of employment, and 50% of global GDP. The report highlights that these firms face higher relative costs in several key areas. In developing economies, small firms spend 19.4% of import value on customs and broker fees, compared to 14.7% for large firms. Additionally, SMEs face higher electricity costs and greater obstacles in accessing finance, with average borrowing costs for SMEs in developing nations reaching nearly 15.8%, versus 10.3% for larger corporations.

UNCTAD notes that rising energy, transport, and financing costs can shrink margins and disrupt supply chains, potentially forcing smaller firms to scale back production or exit the market entirely. This phenomenon, described as an ‘exclusion effect,’ could lead to increased economic concentration and reduced resilience in international trade. The agency is calling on governments to protect SME access to trade finance, liquidity, and working capital to mitigate these risks.