Maputo — The United Nations Conference on Trade and Development (UNCTAD) has warned that Mozambique is among the countries likely to be hit by rising food prices caused by the US-Israeli war of aggression against Iran.
The prices of food are likely to rise sharply because of the reduced availability of fertiliser. Normally Mozambique imports fertiliser via the Strait of Hormuz - but that waterway is under Iranian control, and the Iranians are not allowing most shipping through.
According to UNCTAD, in a document entitled "Strait of Hormuz disruptions: Implications for global trade and development', the rising food prices will also contribute to the cost of living in general.
"The interruption of transit through the Strait of Hormuz could worsen access to fertilizers for some of the poorest countries", reads the document.
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The note points out that, in 2024 alone, the country imported 22 per cent of its fertilisers through the Strait of Hormuz.
"The escalation of the conflict affecting the Strait of Hormuz region is increasingly reflected in fertilizer markets, linking disruptions in energy and shipping to agricultural markets, future food supply and trade", reads the UNCTAD document.
The organization warns that increases in the costs of energy, fertilisers, and transport -- including freight -- can raise food prices and intensify pressure on the cost of living, particularly for the most vulnerable countries.
"When oil prices rise, food prices tend to increase accordingly, and when gas prices go up, fertilizer prices often go up", says the organization.
"The effects are already visible. Prices for nitrogen-based fertilizers have risen significantly, with smaller but noticeable increases in phosphatic fertilizers", adds the document.
Fertilizer trade, the note says, is highly concentrated, increasing exposure to disruption.
"The region's role goes beyond energy. It is also a major producer of key inputs such as sulphur, used in phosphatic fertilizers, and a central hub for global fertilizer trade. Around one third of global seaborne fertilizer volumes pass through the Strait,' the document highlights.
According to UNCTAD, a third of the world's maritime trade in fertilisers passes through the Strait of Hormuz, totalling around 16 million tonnes of fertilisers imported by various countries from the Persian Gulf via this channel, of which 67 per cent is urea, 20 per cent diammonium phosphate, 9 percent monoammonium phosphate, and the remaining 4 per cent other types of fertilisers.
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The Strait of Hormuz, which connects the Persian Gulf to the Gulf of Oman, is also the transport route for around 20 per cent of globally traded oil and a significant portion of liquefied natural gas shipped by sea.
