Renewed tensions at the Strait of Hormuz are raising fears of a global food crisis, as a key maritime corridor faces significant disruptions. The vital waterway, crucial for global energy and agricultural inputs, is experiencing a blockade on ships using Iranian ports, leading to idle vessels and strained supply chains.
According to Máximo Torero, Chief Economist of the Food and Agriculture Organization (FAO), an estimated 30-35% of crude oil, 20% of natural gas, and 20-30% of fertilizers are currently not moving. This bottleneck poses a significant threat to agricultural production worldwide.
While global food markets remain stable due to existing stocks, experts warn this stability is temporary. Farmers facing higher costs and limited fertilizer access may reduce input use, leading to lower yields and potential price surges later in the year. Energy and fertilizers are critical for farm machinery and crop yields, making disruptions globally impactful.
FAO economists caution that the situation could worsen with additional pressures like export restrictions or climate shocks. They urge governments to avoid trade restrictions and support vulnerable nations to prevent a food crisis.