The chief economist of the United Nations Food and Agriculture Organization (FAO), Máximo Torero, warned that the current disruption of the Strait of Hormuz trade corridor is causing one of the most severe shocks to global commodity flows in recent years, with significant consequences for food security, agricultural production, and global markets.
During a daily United Nations press briefing, Mr. Torero emphasized that tanker traffic in the Strait of Hormuz dropped by more than 90% just a few days after the escalation of tensions. This vital artery of global trade usually carries about 20 million barrels of oil per day, nearly 35% of global crude oil flows, as well as one-fifth of global liquefied natural gas (LNG) and up to 30% of internationally traded fertilizers.
“This is not just an energy shock.