ICC Warns of 80 Percent Grain Price Surge Due to Hormuz Strait Disruptions

The International Chamber of Commerce (ICC) has raised alarms about the potential impact of disruptions in the Strait of Hormuz on global food security. The organization warns that prolonged cargo shipment delays through the strait could drive up grain and fertilizer prices significantly.

A prolonged crisis in the Strait of Hormuz could lead to an 80% surge in grain prices, according to the ICC. The decline in fertilizer supplies would raise agricultural production costs, further straining food prices worldwide.

Countries dependent on fertilizer imports are particularly vulnerable to supply chain disruptions. The ICC also noted other risks affecting global agricultural production, including difficulties in Black Sea shipments due to the Russia-Ukraine war and unfavorable weather conditions linked to the El Niño phenomenon.

These combined factors create additional challenges for agricultural production and food supplies, exacerbating existing food security concerns.