Hormuz shipping disruption raises fears of a global food security crisis

Yesterday 18:30

By: Azzat Manal

Hormuz shipping disruption raises fears of a global food security crisis

Disruptions to shipping through the Strait of Hormuz are raising concerns about a potential global food security crisis, as interruptions to the strategic waterway threaten supplies of fertilizers and other agricultural inputs.

John Denton, secretary general of the International Chamber of Commerce, warned that the disruption to a major Middle Eastern shipping route had already triggered a shock in global energy markets and could now create additional pressure on food supplies.

The Strait of Hormuz is particularly important for the agricultural sector because a significant share of the world’s fertilizer shipments passes through the waterway. Prolonged restrictions on maritime traffic could therefore affect farmers far beyond the region by increasing transportation costs and limiting access to essential inputs.

According to figures cited in reports on the disruption, available production and supply capacity has fallen by around 40%, while the global market has lost approximately 2.7 million tonnes of products. The consequences could become more severe if shipping restrictions continue for an extended period.

Grain prices could rise substantially if there is no progress toward restoring normal traffic through the strait. Developing economies that rely heavily on imported agricultural products and fertilizers would be particularly exposed to higher costs and potential shortages. The Philippines, for example, imports a large proportion of the fertilizer it uses for its agricultural sector.

The situation is also being complicated by broader climate-related pressures. The effects of El Niño can influence rainfall and temperatures across major agricultural regions, potentially reducing crop yields and adding further pressure to food prices and inflation.

International organizations and industry representatives have been exploring possible arrangements to maintain safer maritime traffic through the Strait of Hormuz. Discussions have included mechanisms covering vessel monitoring, inspections, insurance and navigation procedures designed to reduce risks for commercial shipping.

However, establishing such a system depends heavily on the wider security situation and diplomatic developments involving the United States and Iran. Continued uncertainty around the strait has made it more difficult for shipping companies and insurers to assess risks and maintain normal operations.

The disruption illustrates how closely energy, transport and food markets are connected. The Strait of Hormuz is a critical route for global energy trade, but its importance extends beyond oil and gas. Restrictions affecting maritime traffic can also disrupt fertilizer supplies, raise agricultural production costs and eventually feed into food prices around the world.

For countries that depend heavily on imports, prolonged disruption could therefore create a combination of higher energy costs, more expensive agricultural inputs and rising food prices. Governments and international organizations are closely monitoring the situation as they assess the potential impact on global supply chains and food security.