The deepening Strait of Hormuz crisis amid the war in the Middle East is choking the critical flow of not just oil but also fertilisers and perishable goods, and the Global South may face worsening food scarcity, warned the chief of a leading international business organisation.
“We’re seeing the impact play out on fertilisers. A lot of people are not fully aware of the importance of the trade, particularly the shipment [of fertilisers] through the Strait of Hormuz and access,” said John Denton, secretary general of the International Chamber of Commerce (ICC).
Calling the hampered flow of fertilisers a silent challenger, Denton warned that the developing world may face heavy collateral damage.
“If the unintended consequences are not visible, you won’t be dealing with them. At the moment, the issue of fertiliser is subsumed under the price of oil and fuel, but that doesn’t mean this silent challenge is going away,” he argued.
“It’s emerging quite sharply as a potential crisis in developing and emerging economies which are dependent on [fertiliser] access and we’re seeing, like, a third of the supply crash,” Denton said in an interview with the South China Morning Post on Friday.
With the US-Israel war on Iran entering its fourth week, global concerns are spiking over the fate of goods trapped in the strait and shortage globally.
