The Cost of Closing the Strait of Hormuz: Energy Bottlenecks and Global Food Security
2026
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AI-generated summary
1) A closure of the Strait of Hormuz would trigger severe global welfare losses, particularly impacting developing countries through energy and food price shocks.
2) This brief analyzes the cascading effects of a Strait of Hormuz closure on global energy and food security, detailing the bottleneck mechanism in supply chains and quantifying the disproportionate impact on vulnerable economies.
3) It examines the short-run and long-run consequences of such a disruption, highlighting the critical role of energy-dependent chemical and fertilizer production in global food security.
Tags: Strait of Hormuz, energy security, food prices, global food security, supply chain disruption
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