00:00The concern from the closure of the Strait of Hormuz is not just about oil.
00:04It is about how quickly this could ripple through the global economy.
00:08Field prices, food costs and supply chains change worldwide.
00:14To put it simple, the war has been going on for around 20 days plus.
00:21And out of these 20 days, the world has received zero supply of oil for four days.
00:29Just think about this. It's not like minus 10 percent. It's not 20 percent less.
00:34It's zero supply for four days.
00:36It's probably the most significant crisis since the Arab oil embargo in the 70s.
00:44And every day it continues. It's actually looking beginning to look even more dramatic.
00:52So unless this kind of stops somehow miraculously in the next few days, we're going to see a very big
01:00jump in prices in every single material around the world.
01:04From energy to food, because actually farmers depend on fertilizers and there's a lot of fertilizers that are being produced
01:12in the region.
01:13There's a lot of scarcity, which is coming our way if it doesn't stop fairly quickly.
01:25Beyond oil, the fertilizer market is among the sectors most exposed to the crisis at the Strait of Hormuz.
01:31Around a third of global fertilizer trade typically passes through this narrow waterway.
01:37Right now, much of that supply is effectively stuck, and prices are already moving.
01:42Nitrogen-based fertilizers, including urea, one of the most critical inputs for farming, have surged between 30 and 40 percent
01:50since the conflict began.
01:52Across Asia, the strain is building.
01:55Producers in India, Bangladesh and Malaysia are scaling back operations, halting orders, cutting production as LNG supplies tighten.
02:03The warning now from the Food and Agriculture Organization is stark.
02:08Its chief economist, Maximo Torero, says if the conflict continues for just a few more weeks, global food supplies could
02:16face significant disruption.
02:18This will affect planting.
02:20There will be lower supply of commodities globally, staple, cereals, animal feed and in turn dairy and meat.
02:27The disruption at the Strait of Hormuz has effectively choked a critical global supply route.
02:33The energy impact is forcing the world to pay more and, in some cases, cut consumption.
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