The deepening conflict in the Middle East and the halt of transportation in the Strait of Hormuz have created serious risks in global raw material markets.
Modern.az reports that possible supply problems in the region can affect not only oil prices, but also food products, fertilizers, metals and other raw materials.
Before the conflict, the Middle East supplied significant volumes of various raw materials to the world market. The region has a significant share in global production and supply of products such as aluminum, urea, anhydrous ammonia, cement, technical sulfur and phosphate.
A possible long-term blockade in the Strait of Hormuz can create problems in the transportation of these products, which can lead to a further increase in prices in the world market.
Recently, prices have also been observed to increase in commodity markets. For example, the Invesco DB Agriculture Fund (DBA), which tracks agricultural products, has risen by more than 11% in the last six months, and the Invesco DB Base Metals Fund (DBB), which covers industrial metals, has risen by approximately 9.4%.
One of the biggest risks is related to the food market. A prolonged conflict can lead to an increase in fertilizer and energy prices, difficulties in logistics, and as a result, an increase in the prices of wheat, corn, meat, vegetables and other food products.
This process can create a serious problem, especially for countries dependent on food imports and with limited economic opportunities. At the same time, the risk of renewed inflation acceleration in developed countries is increasing.
According to expert estimates, if the conflict continues for another six months, it can cause a serious crisis in the global agricultural market. For this reason, one of the main goals of the USA and other countries is to stop the conflict in the Middle East as soon as possible and restore stability.
