ICC expects grain prices to rise by 80% due to the situation in the Strait of Hormuz
Long-term restrictions on shipping in the Strait of Hormuz could lead to a global food crisis. Compared to the level of 2020, grain prices could rise by 80%, said the head of the International Chamber of Commerce (ICC) John Denton.
Long-term restrictions on shipping in the Strait of Hormuz could lead to a global food crisis. Compared to the level of 2020, grain prices could rise by 80%, said the head of the International Chamber of Commerce (ICC) John Denton.
“The disruption of a vital sea route in the Middle East has led to an energy shock. Now a global food security crisis is brewing, Denton warned in an interview with The Wall Street Journal.
According to the head of the ICC, since the closure of the Strait of Hormuz, the world market has lost about 2.7 million tons of fertilizers. If the situation does not change soon, import-dependent countries will be most at risk. Among them is the Philippines, which buys about 90% of fertilizers abroad. The crisis is also exacerbated by supply disruptions in the Black Sea, Denton said.
According to the ICC report, the resumption of supplies through the Strait of Hormuz should be seen as a humanitarian necessity for the whole world. By 2030, about 1 million people could die from hunger. The document notes that even if access to the strait is restored in a short time, 7 to 16 million people will be underweight by 2030.
