UN Food and Agriculture Organization: Persian Gulf Conflict Impacts Global Food and Energy Supply Chains

MetaMuskRat · 2026-03-17T01:00:21+00:00

The UN Food and Agriculture Organization warned that attacks by the United States and Israel on Iran have destabilized the regional situation and disrupted global energy and agricultural supply chains. The report noted that the conflict has increased nitrogen fertilizer production costs, with fertilizer prices expected to rise 15% to 20% in the first half of the year. Rising energy prices are also increasing overall agricultural costs, which could cause broader economic impacts.

MetaMuskRat

2026-03-17 01:00:21

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People’s Financial News, March 17 — On March 16, local time, the United Nations Food and Agriculture Organization (FAO) issued a warning in its latest report that the regional turmoil caused by the attacks on Iran by the United States and Israel has begun to impact global energy, fertilizer, and agricultural supply chains, potentially further increasing the cost of food production. The FAO report states that the ongoing conflict in the Persian Gulf has significantly affected the global energy, fertilizer, and food systems. Specifically, since nitrogen fertilizer production heavily relies on natural gas as a raw material, the blockade of the Strait of Hormuz has driven up energy prices, further raising production costs. If the current conflict continues, global fertilizer prices could rise by an average of 15% to 20% in the first half of this year. The report also notes that rising energy prices are increasing the costs across the entire agricultural supply chain. Beyond impacting commodity markets, this conflict could also lead to broader economic shocks. (CCTV News)

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