Conflicts Fuel Global Energy Crisis as Agricultural Supply Chains Suffer
Global energy markets are under immense pressure due to ongoing conflicts and trade uncertainties. The Russia-Ukraine war in the Black Sea has disrupted agricultural trade flows, shipping activity, and food security throughout 2026.
The conflict intensified in September, with Ukrainian strikes targeting Russian grain export infrastructure and reducing Russian export capacity. As a result, SovEcon estimates that Russian wheat exports during July-September fell to 5.6 million tonnes, down from 11.3 million tonnes a year earlier.
Meanwhile, the US is facing energy security concerns due to the ongoing confrontation between the US, Israel, and Iran over the Strait of Hormuz. The disruption has pushed US diesel prices above $6.50 per gallon, prompting President Donald Trump to consider proposals for a temporary ban on diesel exports to bolster domestic supplies.
The resulting pressure on fuel markets is feeding through agricultural supply chains via higher fuel, fertiliser, processing, and freight costs.