A nurse prepares the Pfizer-BioNTech Covid-19 vaccine for children for distribution in Montreal, Quebec on November 24, 2021.

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The World Health Organization on Friday assigned the Greek letter Omicron to a newly identified Covid variant in South Africa.

The U.N. health agency recognized the strain, previously referred to as lineage B.1.1.529, as a variant of concern.

Health experts are deeply concerned about the transmissibility of the Omicron variant given that it has an unusual constellation of mutations and a profile that is different from other variants of concern.

“This variant has a large number of mutations, some of which are concerning,” the WHO said in a statement released Friday. “Preliminary evidence suggests an increased risk of reinfection with this variant, as compared to other VOCs.”

It is feared a sharp upswing of Covid cases in South Africa’s Gauteng province — where the heavily mutated strain of the virus was first identified — could mean it has greater potential to escape prior immunity than other variants. The number of Omicron cases “appears to be increasing” in almost all of South Africa’s provinces, the WHO reported.

The organization only labels Covid strains as variants of concern when they’re more transmissible, more virulent or more adept at eluding public health measures including vaccines and therapeutics. Data presented at a briefing Thursday hosted by South Africa’s Department of Health indicates that some of Omicron’s mutations are connected with improved antibody resistance, which could reduce the protection offered by vaccines.

Certain mutations could also make Omicron more contagious, while others haven’t been reported until now, preventing researchers from understanding how they could impact the strain’s behavior, according to a presentation at the briefing.

The designation of a new variant of concern coupled with mounting alarm from health officials sent global markets into a tailspin on Friday. Oil prices and travel and leisure stocks took heavy losses on the news.

To be sure, WHO has said it will take weeks to understand how the variant may impact diagnostics, therapeutics and vaccines.

What do we know so far?

Passengers wait at Frankfurt Airport.

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“There are two approaches to what happens next: wait for more scientific evidence — or act now and row back later if it wasn’t required,” said Sharon Peacock, professor of public health and microbiology at the University of Cambridge.

“I believe that it is better to ‘go hard, go early and go fast’ and apologise if mistaken, than to take an academic view that we need to reach a tipping point in evidence before action is taken. Rapid spread in South Africa could be due to super-spreader events or other factors. But there are sufficient red flags to assume the worst rather than hope for the best — and take a precautionary approach,” Peacock said.

The European Union, the U.K., Israel and Singapore are among the countries to have moved to impose travel restrictions on southern African nations.

The WHO has cautioned countries against hastily imposing travel restrictions, saying countries should instead take a “risk-based scientific approach.”

South Africa’s foreign ministry said on Friday morning that the U.K.’s decision to take precautionary measures “seems to have been rushed as even the WHO is yet to advise on the next steps.”

— CNBC’s Elliot Smith contributed to this report.



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