Governments and lobby groups in Italy, Ireland and Hungary are raising concerns over the continuing near-standstill in maritime freight transport in the Strait of Hormuz as the U.S.-Israeli war on Iran escalates.
The strait, a major international waterway for oil, gas and fertilizers, has been a no-go zone for a week now, after Iran retaliated against a joint U.S.-Israeli strike and the conflict spilled into the surrounding region.
The narrow stretch of water lies partly in Iranian territorial waters. Tehran has said the waterway technically remains open but warned that U.S. and Israeli vessels would be targeted, adding it “cannot guarantee the safety of ships from all countries.”
“The attack on Iran has opened a Pandora’s box,” Irish Agriculture Minister Martin Heydon told the Irish Independent, warning that the surge in the price of fertilizers could hit at the worst time of the year, during planting season. The Middle East is also an important market for Irish food and drink exports.
Heydon did not rule out government support packages for farms and food producers, but said it is too soon to talk about it.
The disruption is also raising concerns in Italy, where the largest farmers’ lobby Coldiretti on Tuesday warned that “the disruption of trade routes linked to the war involving Iran is already causing serious damage to exports.”
“The main concern is the markets of the Middle East, where the total value of Italian agri-food exports exceeds €2 billion,” Coldiretti wrote in a press release, adding that particular concern surrounds perishable products like fruits, vegetables or flowers.
“The halt in maritime traffic in the Gulf comes at the peak of the flower export season,” added Coldiretti.
Meanwhile, Hungarian Prime Minister Viktor Orbán, whose country goes to the polls next month, announced Monday that Hungary will renew fuel price caps “to protect Hungarian families, Hungarian entrepreneurs and Hungarian farmers” following what he described as an “international oil price explosion.”