Rising tensions in the Middle East may affect more than just global oil prices. They could also drive up fertilizer costs and food prices worldwide, as the Strait of Hormuz serves as a critical shipping route for both energy and fertilizer products. Thailand relies on this route for approximately 27% of its fertilizer imports.
Nitrogen fertilizer, the most widely used fertilizer globally, depends heavily on natural gas as a key raw material. As energy prices increase, fertilizer production costs are likely to rise as well.
Any disruption to shipping through the Strait of Hormuz could lead to higher fertilizer prices, increasing costs for the agricultural sector, reducing crop yields, and eventually pushing food prices higher.
Analysts warn that the current energy crisis could evolve into a broader food inflation challenge in the coming months, particularly for countries like Thailand that depend on imported fertilizers. This could place additional pressure on agricultural production costs and the cost of living for consumers.
Cr. amarintv
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