Strait of Hormuz Disruptions Threaten Global Food Security
International Chamber of Commerce Secretary-General John Denton warns that U.S.-Iran conflict in the Strait of Hormuz is triggering a global fertilizer shortage and cereal price spikes.
Shipping disruptions in the Strait of Hormuz, driven by a monthslong conflict between the United States and Iran, are threatening a global food security crisis. John Denton, secretary-general of the International Chamber of Commerce, reports that available fertilizer capacity has dropped by nearly 40%, removing 2.7 million tons from the market. This shortage could trigger an 80% increase in cereal prices, which would disproportionately impact developing economies such as the Philippines.
A United Nations task force proposed a mechanism to temporarily transfer governance of the waterway to the U.N. Secretary-General to ensure safe transit. However, the plan remains stalled due to political gridlock between the U.S. and Iran. Denton noted that the mechanism cannot be deployed without a political agreement between the two nations.
The crisis is compounded by existing shipping disruptions in the Black Sea caused by the conflict between Russia and Ukraine, as well as harvest failures linked to the El Nino weather phenomenon.
