Global partners pledge support to offset Hormuz disruption

International partners at the Hamburg Sustainability Conference (HSC) have adopted a joint declaration aimed at mitigating the impact of the ongoing disruption to shipping through the Strait of Hormuz, particularly for countries in the Global South.

The initiative was presented by German Development Minister Reem Alabali Radovan together with representatives from the United Nations, Sierra Leone and the United Kingdom. Signatories include UNDP Administrator Achim Steiner, Sierra Leone Vice President Mohamed Juldeh Jalloh and UK Minister of State for International Development Jennifer Chapman.

Concern over supply chains and energy prices

In the declaration, the partners express "deep concern about the severe impacts of the blockade of the Strait of Hormuz and related disruptions of maritime trade routes on poverty, energy prices and global supply chains." They warn that the crisis is disrupting access to critical supplies, increasing fertilizer and energy costs, and placing additional pressure on vulnerable economies.

Coordinated support for vulnerable countries

The declaration commits the signatories to coordinate existing international initiatives and strengthen support for affected countries. Planned measures include improving food system resilience, expanding local agricultural production, ensuring critical transport and logistics services, and increasing financing for resilience projects.

The partners also agreed to continue exchanging information and coordinating responses to prevent disruptions in maritime trade routes from leading to "hunger, poverty and instability for the most vulnerable."

Relevance for the steel industry

The declaration further highlights the importance of accelerating investments in renewable energy and improving energy efficiency to reduce dependence on imported fossil fuels.

Although the document focuses primarily on development policy, it also underlines the wider implications of disruptions in one of the world's most important shipping corridors. For the steel industry, prolonged restrictions in the Strait of Hormuz could continue to affect energy costs, freight rates and the availability of raw materials, reinforcing the need for resilient global supply chains.

Source: HSC Sustainability Conference, Photo: marketSTEEL