Gulf Fertiliser Blockade: A Looming Global Food Crisis

AI Summary

The blockade of the Strait of Hormuz could lead to a global food crisis due to its impact on fertiliser supplies. A third of global fertiliser trade passes through the strait, which is also crucial for natural gas shipments used in fertiliser production.

The blockade of the Strait of Hormuz has raised concerns about a potential global food crisis due to its impact on fertiliser supplies. The strait is a critical passage for 20% of global natural gas shipments and a third of the global trade in raw materials for fertiliser.

The head of the International Rescue Committee, David Miliband, has warned that the situation is a 'food security timebomb', with the window to avert a massive global hunger crisis rapidly closing.

Fertiliser prices have already risen by more than 60% in Egypt, reaching $780 (£586) a tonne, up from about $484 in late February. The Qatar Fertiliser Company (QAFCO), the world's largest single site for urea exports, has been offline for almost a month.

The Middle East is the source of about 45% of the global trade in sulphur, a key raw material for fertiliser manufacture. Iran is the fourth-largest global exporter of urea, the most widely used nitrogen fertiliser.

A prolonged transport shutdown could disrupt production and increase costs, leading to higher food prices and exacerbating global hunger. The world's poorest countries are among the most vulnerable to fertiliser price rises.