By Maximilian Malawista
UNITED NATIONS, Jul 23 2026 – Prior to the latest round of hostilities between the United States and Iran, freight traffic had been increasing in the Strait of Hormuz, and negotiations were underway for a new agreement to fully restore trade through this channel.

According to UN Trade and Development (UNCTAD), energy markets were likely to bounce back to normal pre-conflict levels faster than that of food, public finance, and transport, leaving many vulnerable economies worse off. UNCTAD research shows a change from about 125 daily ship transits through the Strait of Hormuz in 2026, January 1st through February 27th, to a drop of around 10 daily transits from February 28th through June 14th during the conflict, marking a 92 percent decrease in overall transit ability.

According to UNCTAD and the Strait of Hormuz monitor, levels on June 2nd recorded around 40 ship transits, with an average of 60 through the days after signing the MOU (The Memorandum of Understanding signed by both US and Iranian delegations). This represents roughly half of pre-conflict transit levels.

Source: Author’s visualizations using data from Strait of Hormuz Trade Tracker (WTO)
Note: Daily outbound shipments represent AIS-traceable crude oil tanker departures from the Strait of Hormuz to destinations outside the Persian Gulf. Additionally, this graph is roughly similar to overall shipments of LNG, fertilizer, and Agricultural products through the same period.

Following the closure of the Strait, the daily price of crude oil jumped to USD 120 per barrel, to then an average around USD 100 per barrel through the conflict. The daily price of crude oil has now fallen to on average USD 70 per barrel, roughly returning to pre-conflict levels, indicating that energy markets recovered quickly.

On the contrary, the IGC Grains and Oilseeds Freight index (GOFI), indicates a slow decrease of the heightened costs of transporting both grains and oilseeds by sea (e.g., Wheat, Corn, Barley, Sorghum, Soybeans, Rapeseed (canola), Sunflower seed), across 68 key exporting origins in the regions of the United States, The European Union, Canada, the Black Sea region, Brazil, Australia, and Argentina.

Source: Author’s visualizations using data from the International Grains Council (IGC).
Note: The index is normalized so that 100 represents the average grain and oilseed freight rate on January 1, 2013. During the conflict, the index rose to approximately 190, representing a 90 percent increase relative to the base value and a 30 percent increase from the beginning of the conflict on February 28, 2026.

As a result of the heightened price of grains and oilseeds, among other agriculture components, UNCTAD says, “Past input price shocks remain a risk to future food security,” laying out the cycle in which costs can amount:

1. Traffic through the strait was disrupted.
2. Limited freight traffic constricts the availability and raises the cost of oil, gas and nitrogenous fertilizer.
3. A decrease in energy exports creates higher energy prices, increasing transport and shipping costs.
4. Further fuel inflation slows down the global economy.
5. Agricultural production costs increase.
6. Food production may be affected by the increased cost of agricultural components such as fertilizer, pushing domestic food prices further up.
7. Vulnerable populations may face greater food insecurity and hunger, as a result of the heightened cost of importing food, and domestic agriculture production.

This process has exposed 61 vulnerable economies to dual impact of higher oil and cereal import prices. (e.g., wheat, rice, corn, barley, oats, sorghum, millet, rye) These countries consist of 35 least developed countries and 26 small island states, with seven of those countries being both least developed and small island developing states.

According to UNCTAD, the pressure is “sharpest for economies that rely heavily on imported fuel”, citing an example in Cabo Verde where net imports of oil and petroleum products averaged 24.6 percent of GDP within recent years. This dependence on fuel imports means that those extra costs can quickly make food prices, electricity, transport, and public finances more expensive.

Source: Author’s visualizations using data from UNCTADStat.
Notes: Orange countries are small island states, and blue countries are least developed countries (LDCs).

Yemen was also cited to be at high risk, with analysis showing that net imports of cereal and cereal products averaged 10.8 percent of GDP. For countries like Yemen dealing with conflict, hyperinflation, debt pressure, and limited public financing, a higher import bill for grain compounds an already declining situation.

Source: Author’s visualizations using data from UNCTADStat.
Notes: Orange countries are small island states, and blue countries are least developed countries (LDCs).

UNCTAD analysis indicates that a real increase of food cost by just 5 percent is associated with a higher risk of child wasting (a life-threatening form of acute malnutrition), especially among poor children and children living in rural landless households.

While restoring full trade through the strait is a necessary step to recovery, this will not undo the aftermath that higher import bills, delayed shipments, and higher priced food and energy have on the global economy, especially vulnerable economies.

“The policy task is therefore broader than reopening a route. Vulnerable economies need support to manage higher import bills, protect households from food and fuel shocks, and invest in systems that reduce exposure before the next disruption hits household budgets,” said UNCTAD, indicating the importance for vulnerable economies to develop supply chain resilience, sustainable systems, and have less reliance on concentrated international trade for vital goods such as food and energy, among financial support from the international system.

IPS UN Bureau Report

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By Jomo Kwame Sundaram and Iggy Rodriguez
KUALA LUMPUR, Malaysia, Jul 23 2026 – Sunday’s World Cup final focused world attention on the stench of corruption, past and current, surrounding some of its main protagonists, including Argentina, and the presidents of FIFA, Argentina and the main host nation.

Jomo Kwame Sundaram

Messi football
Nick Corbishley has exposed the corruption of World Cup football and Argentina’s Milei government, enthusiastically supported by US President Trump’s ‘Donroe Doctrine’.

In the run-up, Argentina committed the most fouls — largely in midfield to disrupt their opponents’ play — but only received a controversial red card in the final. It had the most opponents’ goals disallowed but never conceded a penalty.

Of course, there are always subjective elements in applying football rules, and it is difficult to prove foul play. But it is suspicious when referees refuse to use a video-assisted referee (VAR) to check for fouls.

In Argentina’s first game, Messi stepped on an Algerian opponent’s Achille’s tendon with his studs up. Such an offence would typically get a red card, but in this case, there was no card or VAR check.

As many presume, FIFA would not allow the biggest star of world football, now playing in the US league, to get a match ban at the start of the tournament; it would have been a business disaster.

Many believe the ‘inconsistent’ use of rules and VAR checks helped Argentina reach yet another World Cup final. With VAR, the inconsistent application of rules and procedures, such as awarding cards, can tip games with narrow margins in a team’s favour.

Iggy Rodriguez

Considering the history of FIFA corruption and its willingness to bend rules at President Trump’s behest, such suspicions are rife. Worse, the Argentine Football Association is reportedly under Federal Bureau of Investigation (FBI) investigation for fraud and money laundering.

While controversial refereeing and VAR decisions were common in this tournament, Argentina has been accused more than any other team. Many believe the level football field was tilted to favour Argentina and its superstar, Messi.

Such advantages only work at the World Cup level if the team is highly competent and competitive, which Argentina certainly is. The latest World Cup has seriously tarnished the reputation of FIFA and football itself.

Billionaire haven
Meanwhile, Argentine President Javier Milei is trying to remove most remaining restrictions on foreign ownership of Argentine land.

A day after the England semi-final, the Argentine Senate began debating Milei’s bill on the “inviolability of private property”. If passed, it would repeal a 2011 law limiting the acquisition and ownership of rural land by foreigners.

As foreign purchases of Argentine land surged after its late 20th century crisis, its Congress limited sales to foreigners. Already, 13.2 million hectares, or 5% of Argentina, are foreign owned. The Milei government now wants to eliminate remaining restrictions on land sales to foreigners.

Foreign ownership of Argentine land is concentrated in specific areas such as Patagonia, rich in energy and mineral resources. Once approved, the bill will allow foreigners to own such strategic areas with water, minerals and foreign borders.

Peter Thiel, famous for arguing ‘competition is for losers’, is promoting the privatisation of public land by creating charter cities such as Prospera Inc in Honduras.

Thiel recently moved to Buenos Aires, where he is believed to be advising the Milei government. Apparently, he envisions Argentina as an economic haven cum ‘laboratory’ for his investments.

Forbes reports Milei is trying to attract billionaires like Thiel to his “new land of freedom” with a full-citizenship-by-investment scheme and by eliminating property ownership restrictions.

Milei scolded Argentina’s footballers and fans for protesting Britain’s ongoing rule of the Falkland Islands at the England semi-final as his government tries to sell off the most valuable rural Argentine land.

As the dispute between Honduras and Prospera Inc. has shown, once sovereign land is transferred into foreign hands protected by international investment treaties, getting that land back is nearly impossible.

From Nazi to Zionist refuge
Milei enjoys Netanyahu’s and Trump’s support, both of whom want him to stay in power.

Asked why he supported Argentina in the World Cup, Netanyahu made clear it had more to do with Milei than Messi. “Milei is a huge friend of Israel”, recently calling himself the “most Zionist president on the planet”.

Patagonia was identified as a possible site for the establishment of a Jewish State by Theodor Herzl, the father of political Zionism, in the late 19th century. After World War Two, the southern cone of South America became a haven for fascist war criminals fleeing Europe.

Milei’s government has cut public spending and welfare benefits for Argentine citizens. During the last Argentine summer from December to February, vast Patagonian forests went up in flames after Milei cut Argentina’s fire-fighting budget by 80%!

Many believe the government has agreed to allow Israeli settlement on the scorched earth after an Israeli was caught setting fire to 17,000 acres in Chilean Patagonia over a decade ago.

Milei has already signed agreements with the Netanyahu government to grant Israeli citizens living in Argentina access to all government benefits, including pensions, maternity leave and disability allowance.

In the final, Argentina went down to Spain, one of a few European countries to oppose Israel’s genocide in Gaza and the US-Israeli war against Iran, despite repeated threats by Trump.

Despite Spain’s conquistador and fascist past, much of the world supported Spain today against the land of Maradona and Messi, two of the most popular icons of the beautiful game.

Iggy Rodriguez is a Filipino artist and football enthusiast. His solo exhibition in Kuala Lumpur, ‘Under a Borrowed Sun’, runs till mid-August.

IPS UN Bureau

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