Tensions in the Middle East Persist: Attacks in the Strait of Hormuz and Rising Oil Prices

April 20, 2026 World and Security

Meanwhile, preparations are underway in Islamabad for possible negotiations between the USA and Iran. The American delegation, according to available data, will be headed by Vice President Jay Di Vance. According to the Media, Iran has not yet officially confirmed its participation.

Why the Strait of Hormuz is so important

The Hormuz Strait is one of the most strategically important maritime transport arteries in the world. The strait connects major oil and gas producing countries – including Saudi Arabia, Qatar, Iraq, and Kuwait – with global markets.

Under normal conditions, the strait serves as a corridor for a significant share of global energy supplies, including oil, liquefied natural gas, as well as raw materials for various industries – from agriculture to pharmaceuticals.

Since the escalation of the conflict at the end of February, the number of ships passing through this waterway has been reduced to a minimum.

Israel and Lebanon observe the ceasefire regime

During the week, Israel and Lebanon generally adhered to the ceasefire that came into effect on Friday, although there were reports of isolated clashes.

Thousands of people continue to return to the south of Lebanon. In total, more than 1.2 million residents of the country have left their homes. Israeli airstrikes, which began in response to rocket attacks on the northern part of Israel by “Hezbollah” militants after Israeli-American airstrikes on Iran, continued for several weeks.

UN agencies, including the United Nations Children’s Fund (UNICEF), continue to provide assistance to those affected.

Visit of the UN Secretary-General’s Personal Envoy to Egypt

Meanwhile, the Personal Envoy of the Secretary-General for the Middle East conflict, Jean Arnault, is in Egypt, where he will hold talks with representatives of the country’s authorities.

It is expected that during the visit he will familiarize himself with Egypt’s position regarding the conflict and the ongoing regional efforts to support dialogue between Iran and the United States.

Arno will also assess the broader economic and humanitarian consequences of the crisis.

Volatility of oil prices

Global oil prices sharply rose after reports that the USA intercepted and confiscated a cargo ship under the Iranian flag, which exacerbated uncertainty in the global markets. At the same time, the movement of oil tankers through the Strait of Hormuz has still not been restored.

At the start of trading in Asia, the price of Brent crude oil jumped by more than six percent – up to 96 dollars per barrel, reversing the downward trend observed at the end of last week after Iran made it clear that the Strait of Hormuz would be open during the truce.

Volatility in the energy market has been observed since the very beginning of the conflict in the Middle East: prices rose from around 70 dollars per barrel before the crisis to almost 120 dollars at the peak in early March.

Food price growth

The UN also reminds of the rise in food prices worldwide. “The consequences [of the crisis] are obvious,” said the representative of the UN World Food Programme (WFP), Corinne Fleischer.

“When supply chains are disrupted, people end up paying for it in the supermarket. Delays and increases in transport costs lead to higher prices for food products, and families that spend from 50 to 70 percent of their income on food are the first to go without adequate nutrition,” she added.

The countries that are most affected are those heavily dependent on imports. For example, in Laos, fuel prices in certain areas have almost doubled, leading to increased transportation costs and food prices, forcing many families to choose cheaper, less nutritious food.

In Nigeria, fuel prices have risen by more than 60 percent since February, which has doubled transportation costs and also led to an increase in food prices. Many people can barely afford essential goods.

In Egypt, there is also a sharp price surge: vegetables have become almost three times more expensive, staple products by 18 percent.

The restoration of Gaza will require $71 billion

According to the analysis conducted by the United Nations, the European Union, and the World Bank, restoring the Gaza sector over the next decade will require $71.4 billion, including $26.3 billion in the first 18 months.

The material damage caused to the enclave by the conflict is estimated at 35.2 billion dollars, while economic and social losses amount to 22.7 billion dollars.

More than 371 thousand residential buildings have been damaged or destroyed, over half of the hospitals are no longer functioning, almost all schools have been affected. The economic sector has shrunk by 84 percent.