FAO: Reopen Strait of Hormuz Now; 95% Traffic Drop Risks Food Crisis

The FAO has called for the prompt reopening of the Strait of Hormuz to prevent a global food catastrophe, as traffic has fallen by over 95 percent, disrupting energy and fertilizer exports and increasing costs. The closure denies farmers fuel and fertilizers before spring sowing, risking lower crop yields, higher commodity prices, and food inflation, according to FAO chief economist Maximo Torero.

Between 20-45 percent of agricultural nutrients pass through the Strait of Hormuz; disruptions risk reduced production, yields, and food availability. Gulf countries, including Saudi Arabia, Qatar, Oman, Bahrain, and the Emirates, are major fertilizer producers, exporting to India, Brazil, and Australia. They produce nearly half the world's urea and large amounts of other fertilizers.

Oil, natural gas, and petrol prices have doubled in Europe and Asia, and petrol prices have risen over 30 percent in the United States. Tehran closed Hormuz in response to the US-Israeli war on Iran, denying passage to ships flagged by "enemy countries." This disruption has increased transport costs; oil tanker freight rates have risen over 90 percent since February, and war-risk insurance has increased dramatically.

Global trade grew by $2.5 trillion in 2025 to $35 trillion, but the outlook is uncertain. Developing countries face higher import costs and reduced capacity to sustain growth, which can be averted by increased cooperation between advanced and developing economies.