The conflict in the Middle East has caused oil and gas prices to rise, but it could also lead to lower crop yields and higher food prices if it continues to affect global shipping, the BBC reports.
The continued closure of the Strait of Hormuz would lead to higher global prices for staples such as corn, wheat and rice, because this waterway is vital for transporting a third of the world's urea - an essential ingredient in fertilizer, Yara's chief executive told World Business Express.
"In some crops, you can see reductions [in yields] of up to 50%," said Svein Tore Holsether, who runs the world's second-largest fertilizer company.
The timing of the closure means that urea supplies are limited at a time when farmers and growers are buying fertilizers to apply to fields, he said.
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