How the Hormuz closure could affect food, medicines and smartphones

March 27, 2026

A military conflict involving the US, Israel, and Iran has severely restricted maritime traffic through the Strait of Hormuz, causing shipping volumes to plummet from over 100 vessels daily to just a few. This disruption has created widespread supply chain problems affecting not only oil and gas prices but also critical exports like fertilizers, helium, petrochemicals, and sulfur that normally flow through this vital waterway. The timing is particularly problematic as the northern hemisphere enters its crucial spring planting season, when fertilizer shortages could significantly reduce crop yields later in the year.

Who is affected

UK residents (facing higher petrol and heating bills)
Global consumers (potentially higher prices for food, smartphones, medicines, and battery-containing products)
Farmers in the northern hemisphere (facing fertilizer shortages during planting season)
Countries most impacted by food price increases: Zambia (31%), Sri Lanka (15%), Taiwan (12%), and Pakistan (11%)
Healthcare facilities (facing potential MRI scanner supply/cost issues)
Semiconductor, technology, and electric vehicle manufacturers
India's pharmaceutical industry (producer of 20% of world's generic drug exports)
Gulf Cooperation Council countries: Saudi Arabia, Qatar, Oman, UAE, Kuwait, and Bahrain

What action is being taken

BBC Verify is investigating the price impacts of various goods
Ships are avoiding the Strait of Hormuz (traffic has dropped from over 100 per day to just a handful)
Qatar's Ras Laffan helium plant has shut down production following Iranian missile and drone strikes

Why it matters

The Strait of Hormuz is a critical chokepoint for global commerce, handling approximately one-third of the world's fertilizer shipments and helium supplies. The disruption threatens global food security, particularly because the blockage coincides with the northern hemisphere's planting season, meaning reduced fertilizer availability now will impact food production for the entire year. Beyond agriculture, the shortage of helium and petrochemical derivatives affects critical sectors including healthcare (MRI scanners), technology manufacturing (semiconductors for smartphones and computers), and the clean energy transition (batteries for electric vehicles). The interconnected nature of global supply chains means that a disruption in this single waterway cascades across multiple industries, potentially driving up prices for essential goods worldwide.

What's next

Qatar has warned it will take three to five years to repair damage to the Ras Laffan helium plant
Russia could potentially increase fertilizer production to fill the gap in global supplies
Agricultural yields later in the year are expected to be impacted due to reduced fertilizer use during the current planting season

Read full article from source: BBC