The United Nations Trade and Development (UNCTAD) agency has issued a stark warning that Iran’s blockade of the Strait of Hormuz amid the US-Iran war risks surging food prices worldwide, exacerbating cost-of-living crises for the poorest nations.
Chokepoint Carries 38% Global Oil, Key Food Inputs
The vital waterway handles 38% of seaborne crude oil, 29% LPG, 19% LNG, and one-third of maritime fertiliser trade (16M tonnes annually), with 84% destined for Asia including India. Disruptions spike energy, transport, and insurance costs, directly inflating grain, dairy, oils, and meat prices.
Asia, Developing World Hit Hardest
Asia absorbs 84% of Hormuz flows; Gulf states face immediate food insecurity from halted shipments, while higher bunker fuel and freight rates ripple to wheat, corn, soy, and perishables globally. “When oil prices rise, food prices follow,” UNCTAD notes, compounding debt-burdened economies’ woes.
Fertiliser Shock Threatens Yields
Fertiliser shortages could slash farm output, mirroring 2022 crises; experts predict retail hikes in bread, pasta, potatoes, and livestock feed if blockade persists. UN urges diplomatic de-escalation to avert broader shocks.
