UN warns 61 economies face dual oil-food shocks despite Hormuz reopening

The United Nations warned that despite the Strait of Hormuz reopening, 61 economies remain exposed to both oil and food price shocks because they rely heavily on importing oil, petroleum products, cereals and cereal products. The UNCTAD report released this week shows that six countries face only cereal-import risk, six face only energy-import risk, while the 61 most vulnerable—mostly least developed states and small island developing states—have net imports of these goods ranging from 2.4% to 25% of their GDP. Affected nations include Afghanistan, Antigua and Barbuda, Benin, Cabo Verde, Eritrea, Fiji, Gambia, Grenada, Kiribati, Lesotho, Liberia, Madagascar, the Maldives, Mauritania, Mauritius, Micronesia, Mozambique, Palau, Saint Lucia, Somalia, Sierra Leone, Timor-Leste, Togo, Tonga, Vanuatu and Yemen.

These shocks will be felt for many months, with developing countries bearing the heaviest impacts. For import‑dependent economies like Nigeria, higher global oil and food prices could squeeze household budgets, raise inflation and strain public finances that already face debt servicing and aid shortfalls.

Given the uneven and costly path to recovery, should Nigeria bolster strategic reserves, diversify import sources, or strengthen social safety nets to cushion its population from external price jumps?

SOURCE: https://dailypost.ng/2026/07/01/61-economies-face-dual-exposure-despite-hormuz-reopening-un/