Iran War Threatens to Plunge Millions Into Poverty
A war with Iran could push more than 30 million people back into poverty, the head of the United Nations Development Programme (UNDP) has warned. Alexander De Croo said the conflict is disrupting supplies of fuel and fertilizer at a critical moment, just as farmers begin planting.
The fertilizer shortage, exacerbated by the blocking of cargo ships through the Strait of Hormuz, has already reduced agricultural productivity and is expected to result in lower yields later in the season. Food insecurity is forecast to peak in the coming months, De Croo said.
A third of the world's fertilizer supply passes through the Strait of Hormuz, with much of the production originating in the Middle East. Beyond agriculture, the conflict is also generating energy shortages. De Croo warned that even if the war were to end immediately, its effects will have already pushed millions into poverty.
The World Bank, the International Monetary Fund and the UN World Food Programme have all warned that the war will drive up food prices. The crisis has already reduced global economic output by 0.5% to 0.8%, according to De Croo.
Rising needs are also straining humanitarian aid budgets. De Croo cautioned that funding shortfalls will make it impossible to assist all those in need, including populations in Sudan, Gaza and Ukraine.