STANDARDECONOMICVERIFIED
WTO warns Hormuz closure will cause global food scarcity — one-third of world's fertilisers transit the strait
·Geneva, Switzerland
The World Trade Organisation warned that disruptions to international fertiliser supplies caused by the closure of the Strait of Hormuz will cause food scarcity and high prices globally. The WTO noted that approximately one-third of the world's fertiliser supplies normally transit the strait, making the Hormuz closure a direct threat to agricultural production in import-dependent regions.
The World Trade Organisation issued a formal warning on March 25 that the closure of the Strait of Hormuz — imposed following Iran's conflict with Israel and the United States — will cause global food scarcity and elevated food prices. The WTO noted that approximately one-third of the world's fertiliser supplies normally transit the Strait of Hormuz. Fertiliser is a critical agricultural input; supply disruptions typically translate into reduced crop yields 3-6 months later as farmers reduce application rates. Import-dependent regions including sub-Saharan Africa, South Asia, and parts of Latin America face the greatest exposure. The WTO warning adds a global food security dimension to the conflict's economic impact, previously focused primarily on energy prices (Brent ~$98-127/bbl). The Hormuz closure affects: LNG exports from Qatar, crude oil from Saudi Arabia/UAE/Kuwait, fertiliser (primarily from Iran, Qatar, UAE), and petrochemical feedstocks.
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Actor responses
WTO: 1/3 of global fertilisers transit Hormuz — Hormuz closure threatens food security in import-dependent regions. US pursuing Pakistan channel ceasefire partly to reopen Hormuz. 15-point plan includes Hormuz safe passage guarantee.
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