Hormuz disruption raises global food crisis risk, S&P Global says
SPY•SPY•SPY•SPY•S&P Global warned that disruptions to the Strait of Hormuz could raise the risk of a global food crisis, with farm-cost pressures potentially reaching food markets in 2027. About 29% of global urea trade normally passes through the strait, while Brazil’s corn forecast fell by 6 million metric tons to 137 million metric tons.
S&P Global’s October 19 analysis warned that Hormuz disruptions threaten fertilizer availability and could increase pressure on food markets in 2027. Roughly 29% of global urea trade normally passes through the strait, and diesel’s premium over crude exceeded $100 per barrel in early September, compared with a historical range of $12 to $20. Higher oil prices could support biofuel demand, while El Niño could deepen harvest losses; Brazil’s corn forecast fell by 6 million metric tons to 137 million metric tons.
