The Strait of Hormuz is often framed as
an energy chokepoint, but in today’s crisis it is also a food and farm-input
chokepoint. Disruptions to shipping, insurance and regional logistics are
rapidly translating into higher landed costs for grains and oilseeds, while
tightening fertilizer supply at a critical moment for Northern Hemisphere
planting. The figures below highlight why developments in Hormuz matter far
beyond crude oil and why the ripple effects are being felt across trade flows
and food security.
- The Strait handles over 20 million barrels of oil per day—around 20% of global flows—alongside roughly 25% of global liquefied natural gas (LNG) trade.
- The Strait is the primary exit for nearly 30% of the world’s urea and ammonia exports (mainly from Qatar, Saudi Arabia, and the UAE). Following the March 1 escalation, global urea benchmarks jumped by $60–$100 per tonne within 48 hours.
- Approximately 15% of global grain and oilseed trade typically transits the Suez–Red Sea–Hormuz corridor. With the current blockade, vessels rerouting via the Cape of Good Hope face an additional 10–14 days of transit time.
- The Strait of Hormuz handles about 20 million tonnes (Mt) of grain and oilseeds annually. While this represents less than 5% of global trade, its regional impact is critical: more than half of the Middle East’s total forecast imports for 2025/26 (38 Mt, per the IGC) are directly reliant on this single chokepoint.
- Food and live animals account for around 22% of total imports into the Gulf region, highlighting structural exposure in any prolonged disruption.
- Iran is a top-tier destination for Brazilian corn, accounting for roughly 20–22% of Brazil’s annual corn exports. The naval standoff has effectively halted 5 million tonnes of scheduled shipments for Q1 2026.
- War-risk insurance premiums for the Persian Gulf have spiked by 500% since late February, adding an estimated $2–$4 per tonne to the landed cost of wheat and soy in the MENA region.
- The crisis coincides with the Northern Hemisphere spring planting season. The shortage of Middle Eastern nitrogen-based fertilizers threatens to reduce 2026 crop yields by an estimated 3–5% in key importing nations such as India and parts of East Africa.