UN says protracted crisis could trigger agrifood catastroph
e
A prolonged crisis in the Strait of Hormuz could trigger a global agrifood catastrophe by disrupting fertilizer and energy exports, driving up food prices and squeezing crop yields, the U.N. Food and Agriculture Organization said on Monday.
FAO Chief Economist Maximo Torero said poorer countries were most exposed because planting calendars meant delays in access to key inputs could quickly translate into lower output, higher inflation and slower global growth.
Oil prices jumped about 6% to more than $100 a barrel on Monday.
Brent futures were up $5.76, or 6.1%, to $100.96 a barrel at 11:15 a.m. EDT (1515 GMT), while U.S. West Texas Intermediate (WTI) crude rose $5.69, or 5.9%, to $102.26.
Prices for physical crude barrels for immediate delivery to Europe were trading even higher, with some grades already at record highs of about $150 a barrel.
If Trump “does indeed back his blockade threat with actual boats, a convergence between the paper and physical markets may soon come,” said Helima Croft, an analyst at RBC Capital Markets.
Earlier in the trading session, Brent futures were up more than $8 a barrel and WTI was up more than $9.
