UN Warns Supply Chain Disruptions Threaten Global SDGs

Strait of Hormuz Disruptions and Global Supply Chain Shockwaves

Maritime security incidents and military actions in and around the Strait of Hormuz have brought vital transport routes to a near standstill since late February. The narrow shipping waterway, which links the Persian Gulf to the Gulf of Oman and carries roughly one-fifth of the global oil supply alongside critical fertilizer inputs, has become a primary bottleneck according to the UN Secretary-General. UN agencies report that marine traffic has dropped sharply, maritime insurance costs have surged, and nearly 20,000 seafarers remain stranded amid ongoing security risks.

The ripple effects stretch far beyond regional borders. Global shipping costs have climbed by as much as 25 percent as commercial vessels divert away from affected waterways, opting for longer routes around the Cape of Good Hope as documented by the World Food Programme. Port congestion, vessel rerouting, and extended transit times are pushing up operational expenses for energy, fertilizer, and food deliveries worldwide. Maritime operations are expected to take four to five months to stabilize even if conditions improve.

Escalating Food Insecurity and Fertilizer Deficits Across Africa and Asia

The squeeze on maritime logistics is translating directly into rising grocery bills and mounting hunger across import-dependent nations. The World Food Programme projects that 45 million additional people could tip into acute food insecurity if the conflict persists, bringing the global total to 363 million people the highest level on record. Nearly two-thirds of those newly vulnerable populations live in Africa and Asia.

“When supply chains are disrupted, it’s felt when they cash out at the supermarket. Delays and higher transport costs push up food prices, and families who spend 50 to 70 percent of their income on food are the first to go without.”

Corinne Fleischer, WFP Director of Supply Chain

Agricultural inputs are facing parallel bottlenecks. Up to one-third of global trade in fertilizer raw materials passes through the Strait of Hormuz, and disruptions to ammonia and nitrogen shipments are restricting supply during critical planting windows. In Bangladesh, the closure of several state-run fertilizer factories has interrupted domestic production during the winter rice season. In Nepal, surging diesel prices are driving up operating costs for farmers and heavy machinery operators according to UN estimates warning that 9.1 million additional people in Asia could face acute food insecurity if the crisis persists.

Humanitarian Funding Gaps and Stalled European SDG Progress

Humanitarian operations are absorbing heavy financial blows just as needs spike.

Simultaneously, political commitment to the sustainable agenda is faltering closer to home. The Europe Sustainable Development Report 2026, released by the UN Sustainable Development Solutions Network, reveals that progress on the SDGs has stalled across Europe as highlighted during an event co-organized by the European Economic and Social Committee. The report notes a reversal in progress across several European countries on socio-economic indicators, including material deprivation, alongside declining prioritization of the 2030 Agenda within EU policymaking.

“At a time when the United States is openly challenging the SDGs and UN-based multilateralism, Europe must assert an independent foreign policy—one rooted in peace, partnership, and sustainable development in a multipolar world.”

Guillaume Lafortune, Vice President of the SDSN and Lead Author

With external debt in low- and middle-income countries hitting a record USD 8.9 trillion in 2024, and global atmospheric carbon dioxide reaching its highest concentration in two million years after global temperatures hit 1.43°C above pre-industrial levels in 2025, international agencies warn that the next five years will determine whether the 2030 goals remain achievable or slip permanently out of reach.