Closing Strait of Hormuz Raises Global Food Prices

Financial outlets focus on the risk that even a partial Hormuz closure poses to oil, petrochemicals, fertilizers and pharmaceuticals. They report oil jumping more than 2% on doubts about US-led protection plans, while some tankers resume transit and companies from Japan to Europe cut output or seek alternative routes. Commentators stress that if the crisis drags on, higher transport and input costs could squeeze corporate margins and keep consumer prices elevated even if headline inflation was easing before the shock.

• •Oil prices have risen more than 2% on concerns that US-backed plans cannot fully secure Hormuz shipping.
• •Energy and chemical companies such as Idemitsu are cutting output because they cannot rely on steady feedstock deliveries through Hormuz.
• •Gulf importers and Asian economies are racing to reroute cargoes, which increases freight costs and delivery times.
• •Generic drug makers that depend on active ingredients shipped through Hormuz face higher costs and potential shortages.
• •Equity and futures markets are reacting to each sign of tanker traffic resuming or stalling in the strait.