The Strait of Hormuz, a key global maritime chokepoint carrying about a quarter of seaborne oil along with large volumes of liquefied natural gas and fertilisers, is facing severe disruption amid the ongoing conflict in the region. Ship traffic through the Strait has fallen by more than 95 per cent since the crisis began, driving up energy prices and constraining global supply chains. The impact is spreading beyond Hormuz to regional shipping routes, causing longer journeys, higher transport costs, and slower aid shipments, which affects both trade and humanitarian operations.
The crisis is particularly threatening to global fertiliser supplies, especially nitrogen-based fertilisers that rely on gas from Gulf States. This is increasing production costs, putting pressure on agricultural productivity, and potentially driving up global food prices. The timing is critical as the spring planting season begins, and farmers in many regions may struggle to secure affordable fertilisers, risking lower crop yields.
The world’s least developed economies are most vulnerable, as higher costs for fuel, food, fertilisers, and transport could strain public finances and household budgets, worsening food insecurity in import-dependent regions. The UN, through UNCTAD, is closely monitoring the situation, providing data and analysis, and coordinating with governments and partners to keep trade routes secure and predictable, emphasizing the shared global interest in maintaining open maritime transport.
