Hormuz Conflict Triggers Energy Crisis and Global Food Threat, Fertilizer Supply Disrupted

Chairman of the Exchange Companies Association of Pakistan (ECAP), Malik Muhammad Bostan, emphasized that the impact of the disrupted trade route extends far beyond the energy sector.

“Disruption in this route is not just an energy crisis, but a direct threat to global agriculture,” he said, as quoted by from Business Recorder, Sunday (March 22, 2026).

Fertilizer Disruption Threatens Food Production

Bostan explained that the Gulf region is a major supplier of urea and other essential fertilizers for countries such as China, the United States, Australia, and Indonesia.

With the planting season underway in the northern hemisphere, disruptions in fertilizer distribution could reduce productivity of key food commodities, including wheat, rice, corn, and soybeans.

This situation is expected to intensify pressure on global food security, particularly amid economic uncertainty and climate change.

Economic Impact and Rising Inflation

Domestically, ECAP warned that a prolonged blockade could significantly impact Pakistan’s economy. Oil import costs could triple, potentially pushing inflation to between 15% and 17%.

However, Bostan praised proactive measures by the Pakistani government, including the role of the Pakistan National Shipping Corporation (PNSC) in maintaining national energy distribution amid maritime tensions.

He also urged businesses to prioritize national shipping services to reduce reliance on foreign operators and strengthen logistical independence.

Furthermore, Bostan noted that the conflict involving Iran, the United States, and Israel highlights the high risk of regional instability to global peace.

He pointed to growing domestic pressure in the United States on President Donald Trump’s administration to push for a ceasefire.

At the same time, the crisis may provide Iran with an opportunity to demonstrate its strategic resilience as a regional power.

Closing his remarks, Bostan called for immediate diplomatic efforts to de-escalate the conflict and urged the Pakistani government to prepare mitigation strategies to shield the national economy from deepening global energy shocks.