Closure of the Strait of Hormuz could trigger a worldwide food-price crisis, warns FAO
The Food and Agriculture Organization of the United Nations (FAO) has issued a stark warning that the closure of the Strait of Hormuz could cause a severe global food price crisis within the next six to twelve months unless immediate and coordinated action is taken by governments and industry stakeholders to safeguard critical supply chains.
The Strait of Hormuz, a vital maritime chokepoint through which a significant portion of the world’s energy and goods—including essential agricultural inputs—pass, plays a crucial role in maintaining global food security. The FAO highlights that any disruption to this key shipping corridor is already exerting upward pressure on costs faced by food manufacturers, farmers, and importers worldwide. This is largely due to rising prices in energy, fertilizers, and logistics, all of which are fundamental components in the production and distribution of food.
Máximo Torero, the Chief Economist of FAO, explained that ““This is not only an energy shock. It is a systematic shock affecting agrifood systems globally”. He highlighted the critical role of the Gulf region, which is responsible for nearly half of the global sulfur trade. Sulfur is an essential raw material used to produce sulfuric acid, a key component in processing phosphate rock into fertilizers. Any disruption in the supply of sulfur poses a significant threat to global phosphate fertilizer production, including in some of the world’s largest producing countries, potentially destabilizing fertilizer availability on a broad scale.
