UK Foreign Secretary David Lammy said the closure of the Strait of Hormuz is holding the global economy hostage by disrupting trade routes.
The shutdown of this critical waterway threatens the flow of essential commodities, which could trigger a surge in global prices and exacerbate food insecurity. Because the strait is a primary artery for energy and agricultural inputs, its closure impacts markets far beyond the immediate region.
Speaking at a London press briefing on March 15, 2026, Lammy said the closure is disrupting oil, fertiliser, and trade routes [1]. He said that the instability risks pushing millions of people in the Global South into deeper hunger [1].
The economic fallout is already manifesting in energy markets. Oil prices rose by approximately eight percent [2] following the announcement of the closure. However, reports on the long-term impact vary, with some analysts suggesting the closure is unlikely to cause a sharp price spike in the short term [2].
Beyond energy, the agricultural sector faces significant risks. Fertiliser shipments could fall by around 15% if the strait remains closed [3]. Such a drop in supply threatens crop yields globally, which aligns with Lammy's warnings regarding food stability.
Diplomatic efforts to resolve the crisis remain unclear. Some reports indicate that regional powers are actively negotiating a reopening timetable [3]. Conversely, other sources said there is currently no plan to open the Strait [2].
Lammy said, "If the strait stays shut, we could see millions of people in the Global South facing worsening hunger" [1].
“"The closure of the Strait of Hormuz is holding the global economy hostage, disrupting oil, fertiliser, and trade routes."”
The closure of the Strait of Hormuz creates a dual crisis of energy inflation and food insecurity. By restricting both crude oil and the fertilisers necessary for industrial farming, the shutdown leverages global supply chain vulnerabilities to exert geopolitical pressure, disproportionately affecting developing nations that cannot absorb sudden price hikes in basic commodities.
