The United Nations Development Programme (UNDP) has warned that the ongoing US-Israel war on Iran could plunge more than 30 million people into poverty globally, as the conflict continues to disrupt energy and food supply chains.
Speaking at a development meeting in Paris, UNDP Administrator Alexander De Croo described the situation as a major setback to global progress.
“It’s development in reverse,” he said, warning that years of economic growth and poverty reduction could be undone within weeks of conflict.
According to the UNDP, the war has triggered a sharp rise in global energy and fertiliser prices, largely due to disruptions in the Strait of Hormuz — a critical global shipping route for oil and gas.
The blockage of the route has significantly affected the supply of fertilisers and fuel, leading to reduced agricultural productivity and rising food insecurity worldwide.
De Croo noted that even if the conflict were to end immediately, the economic damage has already been done.
“Even if the war stopped tomorrow, the effects are already there and will push more than 30 million people into poverty,” he said.
The UNDP further warned that developing regions, particularly Sub-Saharan Africa, parts of Asia, and small island nations, would bear the brunt of the crisis due to their dependence on imported energy and fertilisers.
The ripple effects are already being felt, with several countries reportedly introducing fuel rationing measures, reducing work hours, and adjusting policies to cope with rising costs.
Beyond economic hardship, the UN also warned of potential political instability, declining remittances, and worsening living conditions for millions of vulnerable people.
To mitigate the impact, the UNDP estimates that about $6 billion in targeted subsidies and financial support would be needed to protect those most affected by rising food and energy prices.