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Iran War Disrupts Global Food Supply Chain

Wall Street Journal Markets •
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The Iran war has triggered a food supply crisis beyond the widely reported energy disruptions. Two critical events have compounded to threaten global food security: the closure of the Strait of Hormuz on February 28 and Iranian missile strikes on Qatar's Ras Laffan Industrial City on March 18.

Media coverage has largely focused on petroleum price spikes, but this framing misses a crucial dimension. The strait closure has halted fertilizer exports from Gulf states, while the Ras Laffan strikes have disrupted liquefied natural gas production needed to power fertilizer manufacturing in other countries. These twin shocks create a cascading effect on global food production.

The fertilizer shortage represents a hidden crisis. Without access to Gulf fertilizer and with LNG feedstock disrupted, countries worldwide face mounting pressure on agricultural output. This supply chain disruption could have lasting consequences for food prices and availability in the months ahead.