The UN Food and Agriculture Organization has warned that the world could face a food price crisis in 6-12 months if the Strait of Hormuz is not opened.
The organization’s chief economist, Maximo Torero stated that governments need to step up action to prevent a global food price crisis.
“Start thinking seriously about how to strengthen countries’ capacity and resilience to these critical drivers to minimize potential negative impacts,” he stressed.
According to the organization, the food price index has been rising for the third consecutive month. The reasons are high energy prices and supply disruptions related to the war in the Middle East.
The organization notes that the crisis will unfold gradually: first, energy prices will rise, then fertilizers, seeds and raw materials, and later food products themselves. The UN called on governments to seek alternative trade routes and not introduce export restrictions.
The Strait of Hormuz remains one of the key routes for global oil exports. It connects the leading producers of the Persian Gulf, including Saudi Arabia, Iran, Iraq and the United Arab Emirates, with the Gulf of Oman and the Arabian Sea.
Before the war in the Middle East, about a fifth of the world’s oil consumption was transported along this route every day. The blockade of the Strait of Hormuz has already had an impact on the further increase in air ticket prices in Europe. This was stated by the head of the International Air Transport Association, Willie Walsh.
