Mar 19 • 06:00 UTC 🇨🇳 China South China Morning Post

Prolonged Iran war could have ‘serious’ impact on food prices, says UN’s FAO

The UN's FAO warns that an extended conflict in Iran could significantly raise global food prices and disrupt agricultural supply chains.

The ongoing war in the Middle East, particularly involving Iran, poses serious challenges for global food security as highlighted by the UN's Food and Agriculture Organization (FAO). As nations, including China, gear up for their spring planting seasons, the repercussions of the conflict are being felt across agricultural markets, with significant increases in fertilizer prices anticipated. The FAO emphasizes the urgency of resolving the war to prevent prolonged disruptions that could worsen global food inflation.

In a recent report, the FAO disclosed that if the conflict persists, global fertilizer prices could remain elevated by 15 to 20 percent above normal levels for the first half of the year. This price surge is likely to escalate agricultural production costs worldwide, potentially leading to an increase in food prices. The situation is exacerbated as key countries around the Persian Gulf, including Iran, Saudi Arabia, and Oman, contribute significantly to the global supply of nitrogen fertilizers, which are critical for crop growth.

The FAO's warnings reflect broader concerns about the stability of agricultural inputs amid geopolitical tensions. Experts are calling for urgent strategies to mitigate the impact of this conflict, urging stakeholders to explore alternative routes for resource supply to cushion the agrarian economy from severe shocks. As food prices rise, the implications for global markets and the potential for food insecurity become increasingly pressing, necessitating international cooperation to address these challenges.

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