FAO Warns of Agrifood Shock from Strait of Hormuz Closure


Abu dhabi: The Food and Agriculture Organisation of the United Nations warned on Wednesday that a prolonged closure of the Strait of Hormuz risks triggering a structural agrifood shock, which could culminate in a severe global food price crisis within six to 12 months. The organisation emphasized the urgency of addressing the situation to prevent widespread economic ramifications.



According to Emirates News Agency, the FAO recommended establishing alternative trade routes, managing export restrictions, safeguarding humanitarian aid flows, and building strategic reserves to absorb rising transport costs. The organisation highlighted that these measures are crucial to mitigating the potential crisis.



The FAO stressed that the window for proactive intervention is narrowing rapidly, noting that current decisions by farmers and governments regarding fertiliser application, imports, and financing will dictate whether a major crisis materialises. The organisation urged stakeholders to act promptly to avert the looming threat.



The shock is projected to ripple through consecutive phases, impacting energy, fertilisers, seeds, crop yields, and commodity prices before culminating in food inflation. The FAO’s analysis indicates that this chain reaction could have far-reaching consequences on global food security.



The situation could be further exacerbated by the onset of the El Ni±o weather phenomenon, which is expected to cause droughts and disrupt rainfall and temperature patterns across multiple regions. The FAO warned that these environmental challenges could compound the risks already posed by the potential closure of the Strait of Hormuz.