Conflict in the Middle East: Impact on global food and agribusiness

The current conflict in the Middle East is sending far-reaching shock waves through global food and agribusiness sectors. The disruption to shipping in the Strait of Hormuz is rapidly driving up oil, gas, and refined product prices, with effects cascading through fuel, power, logistics, and industrial input costs. In addition, the Middle East is a key hub for fertilizers, petrochemical feedstocks, food and agricultural trade, and global logistics. The effects are felt throughout the entire value chain, including consumers.

Overall, the conflict introduces a multilayered global risk environment, with the potential for both short-term volatility and longer-lasting structural impacts on supply chains, pricing, and margins across the global food and agribusiness system.