With few signs that the Strait of Hormuz will be fully open to tankers anytime soon, islands in the Pacific face a deepening crisis with no end in sight.

Despite the weaker earnings outlook, Barry Callebaut said that it expects sales volumes to recover in the second half of the year.

TSMC also warned of potential long term impacts to profitability from the ongoing war in Iran, which has impacted the global supply of chemicals used in chipmaking.

In the case of a prolonged conflict in the Middle East, energy markets and economies around the world need to brace for significant disruptions in the months to come. 

The intensifying standoff over the Strait of Hormuz has revived the push to open a safe shipping route for fertilizer and other goods to prevent a humanitarian crisis.

Rising input costs tied to the conflict in the Middle East are adding strain to an already challenging farm economy, said the American Farm Bureau Federation.

Takaichi announced the initiative at a regional forum that included Japan and major Southeast Asian economies such as Thailand, Vietnam, the Philippines and Malaysia.

India is among the economies most exposed to the war in the Middle East, importing about 90% of its crude oil and more than half of its liquefied petroleum gas.

Under the IMF’s “severe” scenario, global growth would struggle to stay above 2%, and inflation would rise to 5.8% in 2026, and 6.1% in 2027.

No vessels made it through the blockade, which is made up of more than a dozen warships and 10,000 service personnel, according to CentCom.