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El Niño and Iran War Team Up in a Food Squeeze
Key Points
El Niño and Iran War Team Up in a Food Squeeze US consumers are already on edge after prices never fell from post-Covid inflation. To get John Authers’ newsletter delivered directly to your inbox, sign up here. Investors wanted June’s ceasefire in the Gulf to hold.
El Niño and Iran War Team Up in a Food Squeeze
US consumers are already on edge after prices never fell from post-Covid inflation.
To get John Authers’ newsletter delivered directly to your inbox, sign up here.
Investors wanted June’s ceasefire in the Gulf to hold. Iran’s latest closure of the Strait of Hormuz shows how fragile the truce always was, and prompted a 5% rally in Brent crude at Monday’s opening. Reaching $79 per barrel, it was 12.7% from its low set earlier this month. But food shocks can be even more damaging, and fertilizer is possibly the greatest casualty of this war. There could be far-reaching repercussions for global food security. The Strait is a vital conduit for urea, whose price this year has mimicked crude oil: