Strait of Hormuz Crisis Sparks Fears of Global Famine
The crisis in the Strait of Hormuz caused immediate shocks to the world oil market, but analysts are also afraid that rising food prices and fertilizer shortages could increase the risk of famine in struggling nations.
Vespucci Maritime CEO Lars Jensen told Fox News Digital on Thursday that the “worst-case” scenario would resemble “the eight-year closure of the Suez Canal from 1967 to 1975.”
“Best case, there is an agreement between the U.S. and Iran within the next few weeks, and the Strait reopens — and it has to be a deal where there is trust that Iran is sufficiently satisfied with the deal such that they do not suddenly close the strait again,” Jensen said.
“Even in that case, it will still take months for the supply chains to revert back to normality,” he added.
The Suez Canal was shut down by Egypt at the beginning of the 1967 Arab-Israeli War. The Egyptians blocked one of the world’s most important shipping lanes by laying minefields and sinking ships to create physical barriers. The canal remained closed until 1975. It was actually the second time the canal was closed by Egypt, after a much shorter shutdown in 1956-1957. (Read more from “Strait of Hormuz Crisis Sparks Fears of Global Famine” HERE)
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