Strait Of Hormuz Crisis Poses Risks To Global Energy, Food Supplies - Expert

By Mohd Yusof Saari

KUALA LUMPUR, April 16 (Bernama) -- Geopolitical tensions in West Asia involving the United States, Israel and Iran are heightening the risk of disruptions along critical routes such as the Strait of Hormuz, potentially threatening global energy and food supplies, according to an expert.

Dean of the Faculty of Engineering at Universiti Putra Malaysia, Prof Dr Mohd Zainal Abidin Ab Kadir, said strategic routes such as the Strait of Hormuz, the Strait of Malacca and the Suez Canal were not merely trade corridors, but the “main arteries” supporting more than 80 per cent of global trade flows.

He said any disruption, conflict or blockade at these major maritime choke points, particularly the Strait of Hormuz, would not only affect the logistics sector but also influence inflation, fiscal policy and social stability across countries.

“Maritime choke points are critical components in the global economic system, with more than 80 per cent of global trade moving by sea, making any disruption in these routes a systemic risk that can trigger widespread impacts on energy, food and global economic stability.

“When disruptions occur at these choke points, the effects extend beyond logistics, rapidly impacting energy prices, food costs and global economic stability,” he told Bernama.

He was commenting on the significance of the Strait of Hormuz, a narrow maritime passage between the Persian Gulf and the Arabian Sea, which serves as the most critical artery for global oil trade and is at risk of disruption amid armed conflict involving Iran, the United States and Israel.

For the record, nearly 20 per cent of globally traded crude oil passes through the strait daily, and if disrupted due to conflict, large tankers would be unable to transport oil from major producers such as Saudi Arabia, Kuwait and Iraq.

Elaborating further, Mohd Zainal Abidin said recent incidents in the Red Sea and the Panama Canal had demonstrated how supply chain pressures could escalate rapidly, leading to higher shipping and insurance costs.

The lead researcher at the UPM Centre for Advanced Lightning, Power and Energy Research said the Strait of Hormuz remained the most critical point for global energy shocks due to the high concentration of oil and liquefied natural gas (LNG) shipments passing through it.

“Any disruption in Hormuz could trigger sharp increases in oil and LNG prices, raising global energy costs, particularly for importing countries,” he said.

He said the situation could also drive shifts in energy consumption patterns, including the possibility of some countries reverting to alternative fuels such as coal when LNG prices rise.

At the same time, he said maritime disruptions would directly affect food security through higher shipping, fuel and fertiliser costs as well as supply delays, ultimately leading to rising global food prices.

“This impact usually begins with staple commodities such as wheat and corn before spreading to livestock products and daily food items,” he said.

Mohd Zainal Abidin said the ASEAN region was among the most exposed, as it served as a key global trade route while also relying on imports for energy and food.

He said although Malaysia had a certain level of resilience, its dependence on imported energy and grains still exposed the economy to external pressures.

“This economic domino effect begins with rising oil prices, followed by increased transportation and food costs, leading to inflationary pressures and subsidy burdens, which are ultimately felt by the public through a higher cost of living,” he said.

He stressed the need for long-term strategies, including diversifying trade routes, reducing import dependence and strengthening domestic resilience to address increasingly complex disruption risks.

The ongoing conflict in West Asia has left nearly 20,000 seafarers and about 2,000 vessels stranded in the Strait of Hormuz, with the International Maritime Organization (IMO) stating that evacuation cannot be carried out simultaneously due to the narrow 30-kilometre-wide passage, requiring careful coordination among countries amid high security risks.

-- BERNAMA