Hormuz disruption fuels growing risk of global food crisis |
| Disruption to energy flows through the Strait of Hormuz is raising the risk of a global food shock, as higher gas prices are forcing fertiliser producers to cut output, threatening crop yields and pushing up future food prices. Traders warn that reduced LNG supply, rising shipping costs and competition for key inputs are straining agricultural supply chains, while markets have yet to price in prolonged disruption, increasing the risk of tighter global food availability and higher prices, particularly if governments begin stockpiling. The World Food Programme says that nearly 45m more people could face acute food shortages if the conflict stretches into the middle of the year, with the Food and Agriculture Organization warning that India, Bangladesh, Sri Lanka, Somalia, Sudan, Tanzania, Kenya, and Egypt are among the countries most at risk. |
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