The ongoing conflict affecting the Strait of Hormuz region is disrupting energy and fertilizer flows, with measurable impacts on costs and growing risks for food systems, trade and vulnerable economies.
According to the United Nations Conference on Trade and Development (UNCTAD), the disruption is linking energy markets to food systems, with growing implications for trade and development:
- Shipping through Hormuz has collapsed, with transits down by over 95%, disrupting energy and fertilizer flows.
- Energy prices have surged, with oil and gas rising sharply across regions
- The region is central to global fertilizer supply, both as a producer and a key trade route.
- Rising energy, fertilizer and transport costs are increasing risks to food production, supply and prices.
The escalation of the conflict affecting the Strait of Hormuz region, including Iran and the Gulf States, is increasingly reflected in fertilizer markets, linking disruptions in energy and shipping to agricultural markets, future food supply and trade.