LONDON, March 20 : The war in Iran is disrupting fertilizer shipments and driving up energy prices, risking a fresh surge in global food prices. Developing countries, already recovering from the pandemic and Ukraine war, face renewed economic strain.
Fertilizers, vital for agriculture, are heavily affected. The Strait of Hormuz, a key shipping route, is blocked, impacting 30% of global fertilizer trade. Prices have risen 30-40%, with potential impacts on crop yields and food supply.
Countries like Somalia, Bangladesh, Kenya, and Pakistan, reliant on Gulf fertilizers, are particularly vulnerable. In contrast, Latin American nations like Brazil and Argentina are more sheltered, though not entirely immune.
Rising energy costs also threaten to increase production and transportation expenses, further pressuring food prices. Experts warn that the impact could spread from energy to food, causing widespread economic stress.
The European Bank for Reconstruction and Development and the Food and Agriculture Organization are urging contingency measures as the conflict risks prolonged disruption.