European, Asia-Pacific nations warn of ‘serious additional risks’ over Hormuz disruption

A group of European and Asia-Pacific countries on Wednesday warned of “serious additional risks” to global energy security over renewed hostilities and continued disruption in the Strait of Hormuz.

In a joint statement, finance ministers of 11 countries, including the UK, Australia, Japan, Sweden, the Netherlands, Finland, Spain, Norway, Ireland, Poland, and New Zealand, welcomed the ceasefire between the US, Israel, and Iran, calling for its full implementation.

“The past weeks have brought unacceptable loss of life and significant disruption to the global economy and financial markets,” said the statement, noting that the ceasefire will be “crucial” to protecting civilian populations and regional security.

They urged a swift and lasting negotiated resolution to the conflict, as well as a return to free and safe transit through the Strait of Hormuz.

“Renewed hostilities, a widening of the conflict or continued disruption in the Strait of Hormuz would pose serious additional risks to global energy security, supply chains, and economic and financial stability,” it warned.

The statement further stressed that even with a durable resolution of the conflict, impacts on growth, inflation, and markets “will persist.”

The joint US-Israeli war with Iran left some 3,300 people dead and hundreds of thousands displaced in Iran, while 13 US servicemen were killed and hundreds of others wounded in the 39-day war since Feb. 28.

The US and Iran held direct talks in Islamabad, Pakistan’s capital, over the weekend, but the negotiations ended without an agreement. The talks followed a two-week ceasefire announced earlier this month.

US President Donald Trump later announced a naval blockade of the Strait of Hormuz, which took effect at 1400GMT on Monday.