Story perspectives

FAO Warns Hormuz Closure Could Trigger Food Price Crisis

5/22/2026

Summary

FAO Warns Hormuz

FAO warned Iran’s closure of the Strait of Hormuz could spark a price crisis within six to 12 months.
The FAO Food Price Index rose for a third month in April on high energy costs.
Chief Economist Maximo Torero urged governments to boost absorption capacity and resilience.
FAO advised corridors through the eastern Arabian Peninsula, western Saudi Arabia and the Red Sea, and no export bans on energy, fertilizers, inputs.

Summary

Iran Closes Hormuz

Iran closed the Strait of Hormuz after U.S. and Israel launched a war on Iran in February.
The shutdown halted about one-fifth of global oil shipments.
The White House warned the Hormuz shutdown could trigger a fuel-price backlash before the U.S. midterms.
Iran’s closure also stopped urea, ammonia and phosphates needed for industrial-scale farming worldwide.
FAO chief economist Máximo Torero discussed the crisis and recommendations on “The Work We Do.”

History

Historical Context

October 1973 OAPEC, led by Saudi Arabia and Iran, imposed an oil embargo that cut about 60-70% of Middle-East exports to the West and pushed West Texas Intermediate from $3 to nearly $12 per barrel. The 2024 Strait of Hormuz closure, blocking roughly 20% of global oil, urea and phosphate, revives that shock and drives calls for strategic reserves.

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FAO Warns Hormuz

FAO warned Iran’s closure of the Strait of Hormuz could spark a price crisis within six to 12 months.
The FAO Food Price Index rose for a third month in April on high energy costs.
Chief Economist Maximo Torero urged governments to boost absorption capacity and resilience.
FAO advised corridors through the eastern Arabian Peninsula, western Saudi Arabia and the Red Sea, and no export bans on energy, fertilizers, inputs.

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