Strait of Hormuz: AMIS Chair calls for vigilance

Strait of Hormuz: AMIS Chair calls for vigilance

The AMIS Rapid Response Forum met today at a time of heightened geopolitical tensions in the Near East region, with important repercussions for global energy, fertilizer and agri-food markets. These developments add to an already fragile global environment and reinforce the need for vigilance in safeguarding global food security.

Recent events have once again illustrated how shocks originating outside agriculture can transmit rapidly to food systems through a limited number of critical channels. In the present situation, energy and fertilizer markets are of particular concern, given the region's importance as a major producer and exporter of both, as well as the close linkages between energy and fertilizer prices, agricultural input costs and logistical arrangements affecting shipments of both inputs and agricultural commodities. Increased uncertainty surrounding key maritime routes, including the Strait of Hormuz, highlights the exposure of global input supply chains and the risk that cost pressures could influence production decisions and market stability in the months ahead.

In such circumstances, timely and reliable information become especially important. AMIS was established precisely to reduce uncertainty, improve market transparency and support dialogue when volatility risks being amplified. By monitoring global production, stocks and trade flows of key commodities, AMIS supports decision-making and helps limit destabilizing reactions driven by incomplete or inaccurate information.

"Considering current international events, I invite all AMIS participants to continue engaging actively to enhance transparency, and to exercise restraint and cooperation to preserve the stability of global food commodity markets." AMIS Chair (Donald Boucher, Canada)

Predictable and coordinated policy responses are vital in periods of elevated uncertainty. Keeping international trade in food commodities and agricultural inputs open and functioning helps maintain confidence in global markets and limits adverse spillovers, especially for import-dependent countries. Actions that restrict trade or undermine transparency, by contrast, risk aggravating volatility and compounding existing challenges. AMIS will continue to monitor the situation closely and stands ready to engage further with participants as the situation evolves.