Global labor incomes may drop by $3 trillion by 2027 due to redirected trade flows and higher energy costs, the ILO estimates.
The collapse of ship traffic through the Strait of Hormuz has forced a shift to new Eurasian trade corridors. The rerouting follows geopolitical tensions that disrupted the critical shipping lane, a key chokepoint for global energy supplies.
The International Labour Organization projects a $3 trillion reduction in real labor incomes worldwide by 2027. The Pentagon reports $29 billion in U.S. military costs so far, while fuel expenses have risen by $35 billion since the conflict began.
Markets are monitoring the impact on supply chains and energy prices as trade adjusts to alternative routes.