How the Hormuz crisis could trigger a global ‘food shock’
What happened
- S&P Global warns that Hormuz-related disruptions to energy, fertilizer and trade could combine with El Niño to threaten global food security.
- Around 29% of global urea trade, nearly half of global sulfur trade and about 21% of merchant ammonia trade normally pass through Hormuz.
- Farmers may reduce fertilizer use or planted acreage as diesel and fertilizer costs rise, potentially reducing future food production.
Why it matters
Higher energy, fertilizer and transport costs could increase inflation, pressure food producers and raise credit risks across exposed economies and industries. Financial professionals should monitor commodity prices, agricultural borrowers, vulnerable economies and policy responses.
What to watch. The report says the severity remains uncertain and depends on whether war continues to impede energy and fertilizer flows and whether El Niño reduces harvests; food-market effects may emerge in force in 2027.
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Timeline
- First reported by PR NewswireOct 19Out of Hormuz Energy Shocks, the Ingredients for a Global Food Crisis
- Financial Times reportsOct 20How the Hormuz crisis could trigger a global ‘food shock’
- Axios reportsOct 20How the energy crisis could become a food security crisis
- OilPrice.com reportsOct 21S&P Global Warns Hormuz Energy Shock Could Become a Global Food Crisis
- The Wall Street Journal reportsOct 22A Food Crisis Could Follow the Energy Crisis
Who is involved
Sources (5)
- PR NewswireOct 19Out of Hormuz Energy Shocks, the Ingredients for a Global Food Crisis
- Financial TimesOct 20How the Hormuz crisis could trigger a global ‘food shock’
- AxiosOct 20How the energy crisis could become a food security crisis
- OilPrice.comOct 21S&P Global Warns Hormuz Energy Shock Could Become a Global Food Crisis
- The Wall Street JournalOct 22A Food Crisis Could Follow the Energy Crisis
Related
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