Source: Zerno On-Line (Russia)
In a significant development, Iran permits grain vessels Hormuz Strait passage under specific conditions. Iran has allowed limited passage of grain and agricultural cargo through the Strait of Hormuz amid the conflict with the US and Israel. It seeks to stabilize domestic food supplies, the Financial Times reported on March 21.
Iran permits grain vessels Hormuz Strait amid food security concerns
“At least six ships unloaded at Iran’s Imam Khomeini Port, a key commercial hub in the northern Persian Gulf, and then transited the strait into Iranian territorial waters between March 15 and 16,” the report stated.
According to the analytics firm Kpler, five more ships that unloaded at Imam Khomeini Port have transited the strategic waterway via a different route since March 9 to reach the Gulf of Oman.
Blockade impact and Iran’s food import dependency
Following the de facto blockade of the strait, exports from the region have sharply declined. Consequently, this has triggered a rise in energy prices. Despite its own production, Iran relies on imported grain and oilseeds for food and feed. Amid inflation and water shortages, authorities have suspended food exports. Furthermore, they are tightening their grip on supplies to avoid shortages on the domestic market.
The Strait of Hormuz, used for the passage of oil tankers from the Persian Gulf countries, has been effectively closed by the IRGC. On March 15, US President Donald Trump called on countries dependent on oil supplied through the Strait of Hormuz, which Iran has blocked, to ensure the security of this transport route. He then threatened NATO with a “bad future” if it refused to help unblock the waterway.
International reaction and economic consequences
Later, on March 17, Axios reported the reluctance of US allies to join the coalition on the Strait of Hormuz. Trump himself called the blockade of the Strait of Hormuz unfair, as the US “has already won.” The day before, he also announced the imminent end of the operation against Iran. He assured that “it won’t be long.”
Denis Astafyev, entrepreneur and founder of the fintech platform SharesPro, reported on March 20 that a sharp rise in oil prices could trigger a recession in several of the world’s largest economies. This is despite attempts to mitigate the situation with strategic reserves. According to him, the International Energy Agency announced the largest-ever release of reserves – 400 million barrels – by 32 countries.