A closure of the Strait of Hormuz could push food prices and the cost of living higher around the world, with the greatest impact falling on Asia, the United Nations trade and development agency UNCTAD has warned.

In a new report published on Tuesday, 10 March, the agency said Asia could be hit hardest if the strait were closed, because about 84 per cent of the goods carried through the waterway go to Asian countries.

UNCTAD said in the report that rising energy, fertiliser and transport costs could feed directly into food prices, adding to cost-of-living pressure, especially on the most vulnerable groups.

According to the report, 38 per cent of the world's crude oil passes through the Strait of Hormuz. So do 29 per cent of the world's liquefied petroleum gas (LPG) and 19 per cent of its liquefied natural gas (LNG).

UNCTAD's analysis also found that about one-third of all fertiliser shipped by sea worldwide passes through the Strait of Hormuz.

The Bengali report cited Al Jazeera as its source.

Source: Jagonews24. First published in Bengali on The Agro News.