GEORGETOWN, Guyana (CMC)—The Guyana government says the ongoing war in the Middle East, and more specifically, the escalating tensions affecting the Strait of Hormuz, could have far-reaching consequences for the global economy.

Guyana’s President Irfaan Ali, addressing the 136th General Meeting of the Georgetown Chamber of Commerce and Industry (GCCI), said that the disruption to the critical energy corridor would impact countries worldwide, including Guyana, adding that he supports international calls for dialogue and peaceful engagement to stabilise the situation in the Middle East.

“I also want to join with President Trump in the United States in calling on all parties in the Gulf to move towards dialogue and to have constructive conversations in normalising the situation in the Gulf that is affecting all of us,” Ali said.

The United States and Israel launched an attack against Iran on February 28, targeting its missile infrastructure, military sites and leadership in the capital, Tehran, and across the country. Iran’s Supreme Leader, Ayatollah Ali Khamenei, who had led the country since 1989, was killed during the first wave of strikes.

In response, Iran has directly targeted locations linked to US forces. It has increasingly targeted energy and maritime infrastructure across the Gulf, and at the same time, Iranian actions near the Strait of Hormuz, including threats to shipping and reported attacks, have reduced tanker traffic and raised global concerns about energy supply disruptions.

Ali said that the Strait of Hormuz is one of the most strategically important shipping routes in the world, carrying roughly 20 to 25 per cent of global seaborne oil trade as well as significant volumes of natural gas.

He said that disruptions in the region have already begun affecting global markets, noting that 17 per cent of Qatar’s liquefied natural gas (LNG) capacity has been impacted in recent days.

The situation has triggered rising costs across several sectors, including a 25 per cent increase in fertiliser prices, which could have direct consequences for agriculture and food production globally.

“These are the important ingredients for manufacturing, industrial development and most economies around the world,” Ali told the business community, warning that even if hostilities cease immediately, the damage to energy infrastructure across the Gulf could take years to repair.

“So already this is not a short-term situation. Even if the war stops tomorrow, you already have on our hands five years of challenge,” he said, pointing to rising freight and transport expenses, and explaining that shipping prices and insurance costs have already increased significantly due to the heightened risks in the region.

He said that maintaining open trade routes through the Strait of Hormuz is critical to global economic stability.

“That is why we support every effort to have the Strait of Hormuz open and functional and every effort in bringing the war to an end,” Ali said, adding that the government is closely monitoring the situation and remains prepared to make the necessary policy adjustments to protect the country’s economy.

Ali told the business community of his government’s renewed push for the establishment of an oil refinery in Guyana, describing it as a critical national security priority amid escalating global energy uncertainties and supply chain disruptions.

“Now, I believe we should return to the conversation of a refinery for national security,” President Ali said, noting that despite Guyana’s emergence as an oil-producing nation, the country still depends heavily on imported fuel, particularly for electricity generation.

He said the fuel bill for Guyana Power and Light Inc. remains substantial and could rise further with global price shocks, and that investing in refining capacity would provide greater control over fuel supply, pricing, and long-term energy security.

Ali also pointed to a broader strategy of building out national energy infrastructure, including the gas-to-energy project, which is expected to reduce reliance on imported fuels and lower electricity costs over time.

He emphasised that closer collaboration between government and business will be essential to navigate the uncertain global environment while sustaining Guyana’s strong economic growth.

“We are closely monitoring the situation. We are vigilant, we are responsible, and we stand ready to make the necessary adjustments,” he added.