FAO warns of global repercussions from the Persian Gulf crisis

The chief economist of the UN Food and Agriculture Organization (FAO), warned that escalating tensions in the Persian Gulf have triggered one of the fastest and most severe disruptions to global commodity flows in recent years, posing a serious threat to global food security.

Disruption in the Strait of Hormuz and a double shock to agriculture
According to the report, since the start of the hostilities, tanker traffic through the Strait of Hormuz — one of the world’s most vital energy corridors — has dropped by more than 90 percent. Under normal conditions, roughly 35 percent of global crude oil flows, equal to 20 million barrels per day, along with 30 percent of global trade in chemical fertilizers and about one fifth of liquefied natural gas, pass through this route.

This widespread disruption has subjected the agricultural sector to a “dual shock” from rising fuel prices and higher costs for production inputs, including chemical fertilizers — a development that could create serious challenges for the global food supply chain.