ICC Warns Hormuz Strait Disruptions Could Spike Grain Prices 80 Percent

The International Chamber of Commerce (ICC) has issued a warning about the potential impact of disruptions in the Strait of Hormuz on global food security. The ICC reports that prolonged cargo shipments through the strait could drive up fertilizer and grain prices significantly.

A decline in fertilizer supplies is expected to raise agricultural production costs, further straining food prices. The ICC estimates that grain prices could surge by as much as 80% if the crisis in the Strait of Hormuz persists. Countries heavily reliant on fertilizer imports are particularly at risk from these supply disruptions.

Additional risks to global agricultural production and food supplies were also highlighted by the ICC. These include difficulties in Black Sea shipments due to the ongoing Russia-Ukraine war and unfavorable weather conditions caused by the El Niño phenomenon.