The blockade of the Strait of Hormuz is raising new concerns beyond oil markets, with experts warning the disruption could threaten the global food supply. The strategic waterway is a key route not only for energy exports but also for fertilizers essential to agricultural production worldwide.
Since hostilities in the Gulf intensified on February 28, at least 10 vessels have reportedly been attacked in the area, with maritime traffic slowing significantly. Shipping companies have halted operations as insurance premiums and cargo rates surge, leaving hundreds of vessels stranded on both sides of the strait.
Around 30% of global oil exports, 20% of the world’s natural gas supply, and as much as 30% of fertilizer exports pass through the Gulf’s narrow access to the open ocean, making the disruption a major concern for global trade and food production.
Tensions have been escalating in the Strait of Hormuz since 2019, when multiple international incidents occurred in the vital maritime corridor. Indeed, around one fifth of the world’s liquefied natural gas and about 20% of total global oil consumption passes through this narrow waterway, which links the Persian Gulf with the Gulf of Oman. To discover more about the Strait of Hormuz and its importance, click through this gallery.