Experts note that the Middle East plays a crucial role in the global energy balance. Approximately 20% of the world’s oil and liquefied natural gas supplies, as well as about 10% of global diesel supplies, pass through the Strait of Hormuz — a maritime route between Iran and the United Arab Emirates. Due to the ongoing conflict, maritime security in the region has deteriorated significantly, and some vessels are temporarily avoiding the passage through the strait.
As a result, energy prices on global markets have increased. This week, the price of crude oil exceeded $100 per barrel for the first time since 2022. For comparison, it had been around $73 per barrel before the escalation. Rising oil prices inevitably translate into higher costs for fuel, electricity, and other energy resources, affecting production expenses in livestock industries worldwide.
In addition, the situation in the Middle East has already affected the fertilizer market. Disruptions in transport through the Strait of Hormuz are influencing global nitrogen and phosphate fertilizer markets, pushing prices higher, particularly in Southeast Asia.
According to Rabobank analysts, the most significant impact of the conflict may be seen in the poultry sector, as poultry production and consumption are highly developed in the Middle East. The region — including Iran, Afghanistan, and Turkey — accounts for about 8% of the global poultry market and nearly 15% of international trade, as well as around 10% of global production growth. Supply chains, trade flows, and input availability in the region have already been disrupted by the conflict.
For now, agricultural commodity markets are reacting more moderately. Prices for grains, including wheat, have changed little, and in Europe prices for certain feed by-products such as wheat bran and steam potato peels have also remained relatively stable.
However, experts warn that if the conflict continues and transport costs rise, feed prices may gradually increase as well, which would ultimately raise production costs in livestock farming.
Future developments in energy markets will largely depend on how the situation in the Middle East evolves. Two key factors will be the restoration of safe shipping through the Strait of Hormuz and the extent of damage to oil and gas production infrastructure in the region.
PigUA.info based on materials from pigprogress.net