A potential geopolitical crisis in the Strait of Hormuz could have devastating consequences for global food security, extending far beyond energy markets. The strait is a critical transit route for approximately one-third of the world's traded urea, a vital nitrogen fertilizer.
Modern agriculture's reliance on synthetic fertilizers, produced using natural gas abundant in the region, means any disruption to Hormuz would severely impact fertilizer availability and prices. This shock could lead to dramatically reduced crop yields worldwide, exacerbating food inflation and threatening the stability of global food supplies.
