Russia Warns of Potential Disaster for Global Markets if the Strait of Hormuz is Closed

Kyrill Dmitriev, a senior official in Russia and the special representative of the Russian president for investment and economic cooperation with foreign countries, warned that the closure of the Strait of Hormuz could trigger significant disruptions in global commodity and agricultural markets, including oil and fertilizers.
Dmitriev explained that the strait is a vital artery for the passage of oil, gas, and agricultural shipments, making any disruption there quickly reflected in prices and global supply chains.

Reliance on the Strait for Fertilizer Shipping

Dmitriev noted that a considerable percentage of agricultural fertilizer components pass through the Strait of Hormuz, and thus its closure would directly impact global agricultural production and increase market volatility.
These warnings come amid previous Iranian threats, where Brigadier General Ibrahim Jabari announced that the strait had been "closed," warning against targeting any ship attempting to cross, asserting that Iran would not allow oil exports amid the current military escalation.

Strategic Importance of the Strait

About one-fifth of global oil and gas supplies pass through the Strait of Hormuz, making it a key hub for energy and international trade. Any disruption there, as Russia states, could lead to significant shocks in the markets, ranging from rising energy and commodity prices to impacts on global food security.

Geopolitical Context

The Russian warnings come amid rising tensions in the Middle East, with Iran continuing to threaten maritime navigation and responding to U.S.-Israeli raids, increasing risks to global markets and heightening fears of a new wave of inflation and disruptions in international supply chains.