Middle East war: Rising prices threaten to worsen world hunger
Rome, Italy (PANA) - The escalation of the conflict in the Middle East could lead to soaring food and fuel prices, warns a United Nations agency, which fears repercussions beyond the region and a worsening of global hunger among the most vulnerable populations.
Eleven days of war, which have shaken Tehran and set the Middle East ablaze, are already disrupting supply chains, driving up costs, and weakening families' purchasing power. According to the World Food Programme (WFP), people who were already in precarious situations could be pushed into even more severe food insecurity.
The conflict is already having immediate repercussions on food security in the Middle East. In Lebanon, there is significant internal displacement among a population that has been facing severe food insecurity for several years.
In Iran, pre-existing economic pressures are exacerbating the crisis. Economic stagnation, high food inflation, and rapid currency depreciation were at the root of food insecurity before the current conflict, leaving households with limited capacity to absorb further shocks.
In Gaza, although some crossing points have since reopened, food prices remain high, which continues to limit access to affordable food.
Beyond the Middle East, the conflict is causing "serious disruptions" in the global supply chain, with an unprecedented scenario of a "double bottleneck" for transport, which is affecting the markets for maritime transport, energy and fertilizers, with obvious repercussions.
This situation is already evident in the Strait of Hormuz, a strategic passage for global trade. Disruptions in this transit route, which handles approximately 20% of global oil and gas shipments, have led to "a decrease in maritime traffic, an increase in naval risks, and the diversion or suspension of commercial freight".
The WFP warns that if the conflict escalates, the combination of the Strait of Hormuz and the Red Sea, another strategic passage for global trade, could create "an unprecedented scenario of a double bottleneck for global trade and energy flows".
"If the current scenario were to continue, rising oil prices should lead to an increase in food prices worldwide," the UN agency warns in its latest situation report.
The current situation not only threatens global markets but also complicates the delivery of humanitarian aid to vulnerable populations. "This increases the risk that people will wait longer for aid and face increased food insecurity and malnutrition."
More broadly, these tensions in the Strait of Hormuz are driving up fuel and transport prices. According to the WFP, this therefore increases “the risk of renewed global inflation, with repercussions for food prices worldwide”.
Faced with these tensions and soaring costs WFP has secured concessions from shipping companies to facilitate the delivery of aid. The UN agency reports having "successfully" negotiated the removal of emergency surcharges imposed by major maritime carriers. The aim is to alleviate the financial burden on the WFP and other humanitarian partners.
As airspace closures and the closure of certain maritime routes continue to limit operations, the WFP is adapting to maintain the continuity of assistance. This includes relying more heavily on suppliers and transit routes in Turkey, Egypt, Jordan, and Pakistan, as well as utilising land corridors between the UAE and the Levant where possible.
Fully operational Egyptian ports and the Suez Canal are also being used to support regional operations by humanitarian agencies.
-0- PANA MA 10March206
