{"id":114859,"date":"2026-04-14T14:47:53","date_gmt":"2026-04-14T09:17:53","guid":{"rendered":"https:\/\/mavericknews30.com\/?p=114859"},"modified":"2026-04-14T14:47:53","modified_gmt":"2026-04-14T09:17:53","slug":"fao-flags-danger-as-resources-are-fast-depleting-with-destruction-in-hormuz","status":"publish","type":"post","link":"https:\/\/mavericknews30.com\/?p=114859","title":{"rendered":"FAO Flags Danger As Resources Are Fast Depleting With Destruction In Hormuz."},"content":{"rendered":"\n

New York; April 2026<\/strong>: M\u00e1ximo Torero, Chief Economist of the Food and Agriculture Organization (FAO) yesterday (13th April 2026) late evening has stated that: \u201cWe have 30% to 35% of the crude oil, which is not moving, 20% of natural gas, and between 20% to 30% of other fertilisers that are not moving out of the Strait Of Hormuz\u201d.<\/p>\n\n\n\n

Many vessels remain stranded in the Gulf, with new shipments yet to enter the corridor. Shipowners and insurers are reluctant to risk costly assets and crews amid ongoing insecurity. Even if tensions ease, it could take days or weeks for traffic to normalise. That delay is critical, warns David Laborde, Director of Agrifood Economics Division at FAO. Much of the cargo that left the Gulf before the crisis has already reached its destination, meaning the world is now entering a phase where supplies could begin to tighten. \u201cWe are going to see the real stop in supply in the days ahead\u201d, he said.<\/p>\n\n\n\n

Despite sharp increases in input costs, global food prices have not yet surged, a point FAO economists stress should not be mistaken for a sign of underlying stability. The FAO\u2019s Food Price Index for March showed only modest increases, reflecting strong global stocks and good harvests last year.<\/p>\n\n\n\n

\u201cWe have enough supplies, and good stocks which allow the agri-food system to be resilient to this shock\u201d, Torero said. But that buffer may be short-lived. As planting decisions are made in the coming weeks, farmers facing higher costs and limited access to fertilisers may reduce input use or shift crops, lowering yields in the next season. \u201cIf we don\u2019t have the inputs in the time that is needed, that implies that producers will have to produce with less inputs\u201d, he said. \u201cAnd therefore, they could have lower yields\u201d. That, in turn, could drive up food prices later in the year and into the next.<\/p>\n\n\n\n

The risks extend across the entire food value chain. Energy underpins everything from farm machinery to transport, while fertilisers, particularly nitrogen-based products linked to natural gas, are critical for crop yields. The impact is global: from the US and Canada to Australia, farmers depend on stable access to energy and inputs to maintain production, while import-dependent countries, including many in Africa, such as Kenya, face heightened exposure to price shocks and supply disruptions.<\/p>\n\n\n\n

Higher oil prices are also increasing incentives to divert crops such as maize, sugar and oilseeds toward biofuel production, tightening the balance between food and fuel. \u201cIf we have rising demand because biofuels start to consume more, and lower supply because we have less input, food prices will go up\u201d, David Laborde has warned.<\/p>\n\n\n\n

FAO economists warn the situation could deteriorate further if additional pressures emerge, including export restrictions or climate shocks such as the El Ni\u00f1o weather pattern. In past crises, countries have restricted exports to protect domestic markets, exacerbating global shortages. \u201cWe need to avoid export restrictions, especially now for fertilisers and energy\u201d, Torero said, warning that without coordination, vulnerable countries could be priced out of essential supplies.<\/p>\n\n\n\n

Although the crisis is centered in the Middle East, its effects are spreading rapidly. Countries in Asia and the Global South are particularly exposed due to their reliance on imported energy and fertilizers and their position in the crop calendar. \u201cThis will start to move from east to west, but also from the south to the north\u201d, Torero further stated.<\/p>\n\n\n\n

The consequences are both economic and human. Higher food prices hit poorer households hardest, while rising inflation could force governments to tighten monetary policy, slowing growth and increasing debt burdens. Farmers are also under mounting pressure. Rising input costs and uncertainty are squeezing margins and raising the risk of longer-term disruptions to production. \u201cWhen you push them too much, you may bring them into bankruptcy\u201d, Laborde said, while further asserting that, \u201cAnd then it means there will be a supply problem, for a longer period\u201d.<\/p>\n\n\n\n

Across parts of Asia, early signs of disruption are already emerging. In South Asia, rising fuel and fertilizer costs are beginning to filter into food prices and farm decisions, with import dependent economies under mounting pressure.<\/p>\n\n\n\n

In Nepal, where millions of households rely on remittances from Gulf countries, disruptions to mobility and rising transport costs are already being felt, raising concerns that what begins as an external shock could quickly translate into hardship at home.<\/p>\n\n\n\n

FAO is urging governments and international financial institutions to act quickly.<\/p>\n\n\n\n