2 months ago
CNBC Sep 2, 2026

‘Danger zone of extreme weather’: UN warns of supersized El Niño set to hit global economy and markets

The United Nations has issued a stark warning about a "supersized" El Niño that is intensifying rapidly and expected to persist until February 2027. This extreme weather event is raising the risk of severe floods, droughts, and heatwaves across many regions. U.N. Secretary-General António Guterres highlighted that the world is entering a "danger zone of extreme weather" due to this phenomenon, emphasizing the urgent need for climate action to mitigate its damaging effects on communities and economies.

The immediate impact of this powerful El Niño is most apparent in the Asia-Pacific and Latin America regions, where countries like Guatemala, Honduras, El Salvador, and Indonesia are already grappling with drought, wildfires, and crop failures. India is also facing a weaker monsoon season, which threatens to reduce output of essential agricultural products such as rice, sugar, cotton, and soybeans. Peru’s fishing industry has been hit hard, especially the anchovy sector critical for livestock feed, showing broad disruptions that could ripple through food supply chains worldwide.

This climate pattern is expected to further disrupt commodity markets, influencing prices of staple goods like corn, cocoa, and coffee, as well as energy supplies. Hydropower, wind, and solar energy production, along with oil, gas, and mining operations, face uncertainties due to unpredictable weather-driven fluctuations in output and demand. The World Meteorological Organization reported ocean temperatures soaring up to 2.6 degrees Celsius above average at the surface, with subsurface waters registering even higher anomalies, driving the intensity of this event beyond typical El Niño episodes.

El Niño occurs roughly every two to seven years, marked by elevated sea temperatures in the tropical eastern Pacific. The current event's severity, with ocean heat reaching unprecedented levels, underscores the heightened threat of climate-related instability. The UN’s warnings underscore the critical balance between escalating environmental risks and the global commitment to climate resilience, as the cascading economic fallout challenges markets and supply chains worldwide.

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