Middle East conflict to derail global economic pickup, push inflation sharply higher, says OECD
The Middle East conflict is disrupting trade through the Strait of Hormuz, which could lead to a spike in global food prices. The conflict's impact could be felt far beyond the energy markets, affecting countries that rely heavily on food imports and fertilizers.
The Middle East conflict is affecting global trade through the Strait of Hormuz. This strait is a key route for oil, gas, and fertilizer shipments. The disruption could lead to higher farming costs and reduced crop yields, resulting in more expensive food. Countries in the Gulf region, such as Qatar and Saudi Arabia, are at immediate risk due to their reliance on maritime imports. Sub-Saharan Africa is also vulnerable, as farmers there depend heavily on imported fertilizers. Other regions, including South and Southeast Asia, could face mounting cost pressures due to their reliance on imported fertilizers from the Gulf.
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