UN calls for end to U.S.-Iran conflict as trade disruption deepens

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UN calls for end to U.S.-Iran conflict

Highlights

UN Secretary-General Guterres warns the U.S.-Iran conflict and resulting Hormuz and Bab al-Mandab disruptions are severely straining global trade, with hundreds of ships stranded for months.
The UN credits Pakistan with facilitating the 17 June Islamabad Memorandum, securing a ceasefire and advancing U.S.-Iran diplomatic negotiations amid heightened regional instability.
Guterres highlights Pakistan's vulnerability to climate and economic shocks, referencing its 2022 flood losses and leadership in the Loss and Damage Fund and clean energy initiatives.

Pakistan visit highlights diplomacy and trade risks

As reported by UN News, Guterres says in Islamabad that all parties must end the conflict, return to diplomacy and fully restore navigational rights and freedoms under international law. He links the war directly to mounting strain on global trade, with the Strait of Hormuz remaining a critical corridor for crude oil, fertilisers and liquefied natural gas.

The crisis begins in late February after joint U.S.-Israeli strikes on Iran, followed by Tehran's counterattacks on targets in Gulf countries and Jordan and its blockade of transit through the Hormuz chokepoint. Hundreds of ships and their crews have been stuck at sea for months, underscoring the commercial fallout for shipping and commodity flows.

Guterres also points to a broader regional spillover, with fighting extending to Yemen's Red Sea coast, where Iran-backed Houthi forces are battling government troops backed by Saudi Arabia for control of the Bab al-Mandab Strait. The dual pressure on Hormuz and Bab al-Mandab raises risks for trade routes that are central to energy and goods transport between Asia, the Middle East and Europe.

Pakistan's regional role and wider economic pressures

During the visit, the UN chief praises Pakistan for helping create conditions for dialogue between the U.S. and Iran. He says the country's efforts help deliver the 17 June Islamabad Memorandum of Understanding, the subsequent ceasefire and a framework for further negotiations.

He also broadens the message to regional stability, saying lasting peace requires realization of Palestinian self-determination, while describing Pakistan as a source of solidarity and solutions. Guterres notes Pakistan's support for Afghan refugees, its recent service on the UN Security Council and its longstanding contribution to UN peacekeeping operations.

Beyond security, he returns to the economic strain created by climate and conflict. Recalling Pakistan's catastrophic 2022 floods, he says the country remains on the frontlines of climate impacts despite contributing only a small share of global emissions, while also taking a leading role in the Loss and Damage Fund and in advancing a clean energy transition.

Our earlier coverage of TotalEnergies’ strategy during the Middle East conflict explained how the company’s integrated model across production, refining and trading can turn market turmoil into higher earnings. We also noted that despite meaningful regional exposure, TotalEnergies chose to keep LNG deliveries flowing and positioned reliability of supply as a competitive advantage amid tightening energy markets.

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