FAO Warns of Global Food Security Risks at Hormuz

Disruption to Strait of Hormuz trade corridor triggers severe shock to global commodity flows, with significant implications for food security, agricultural production, and global markets.

Mar. 27, 2026 at 6:52am

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The Chief Economist of the Food and Agriculture Organization of the United Nations (FAO), Máximo Torero, warned that the ongoing disruption to the Strait of Hormuz trade corridor is triggering one of the most severe shocks to global commodity flows in recent years, with significant implications for food security, agricultural production, and global markets. Torero highlighted that tanker traffic through the Strait has collapsed by more than 90 percent, affecting the flow of oil, liquefied natural gas, and fertilizers.

Why it matters

The Gulf region accounts for nearly half of global sulfur trade, a critical input used to produce sulfuric acid for processing phosphate rock into fertilizers. Disruptions to sulfur supply risk fracturing global phosphate fertilizer production, including in major producing countries. This could lead to reduced yields for fertilizer-intensive crops such as wheat, rice, and maize, and increased competition from biofuel production as higher oil prices stimulate demand for agricultural feedstocks.

The details

Shipping constraints have been compounded by surging insurance costs, with war-risk insurance premiums rising from 0.25 percent to as high as 10 percent of vessel value. Fertilizer prices have risen sharply, with Middle East granular urea increasing by 19 percent and Egyptian urea prices surging by 28 percent in the first week of March. Farmers are facing a dual cost shock, with more expensive fertilizers and rising fuel costs affecting the entire agricultural value chain.

  • The ongoing disruption to the Strait of Hormuz trade corridor has been occurring in recent days.
  • Tanker traffic through the Strait has collapsed by more than 90 percent within days of the escalation.
  • Fertilizer prices have risen sharply in the first week of March 2026.

The players

Máximo Torero

The Chief Economist of the Food and Agriculture Organization of the United Nations (FAO).

Food and Agriculture Organization of the United Nations (FAO)

An international organization that leads international efforts to defeat hunger and improve nutrition and food security.

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What they’re saying

“This is not only an energy shock. It is a systematic shock affecting food systems globally.”

— Máximo Torero, Chief Economist, Food and Agriculture Organization of the United Nations

“Farmers are facing a dual cost shock: they have more expensive fertilizers alongside rising fuel costs affecting the entire agricultural value chain, including irrigation and transport.”

— Máximo Torero, Chief Economist, Food and Agriculture Organization of the United Nations

What’s next

The duration of the crisis will determine the scale of its global impact. If the disruption persists for three months or longer, risks escalate significantly, affecting global planting decisions for 2026 and beyond.

The takeaway

The disruption to the Strait of Hormuz trade corridor is triggering a severe shock to global commodity flows, with significant implications for food security, agricultural production, and global markets. Urgent, coordinated international action is needed to establish alternative trade corridors, provide emergency financial support, and invest in sustainable, input-efficient agriculture to mitigate the long-term impacts.