Prof. Dr. Haider Ali Al-Dulaimi
College of Administrative Sciences – Al-Mustaqbal University
The importance of the Strait of Hormuz is not limited to its role as a strategic passage for transporting oil and gas; its impact extends to the global trading system, supply chains, and the prices of essential commodities. Any disruption to maritime traffic through this vital passage can affect transportation, insurance, and energy costs, which may subsequently influence food prices and the ability to secure adequate food supplies, particularly in countries that rely heavily on imports.
These implications are particularly significant for Iraq, given that a substantial share of the domestic market’s food requirements is linked to external markets. The Strait of Hormuz crisis therefore represents a genuine test of the Iraqi economy’s ability to safeguard its food security. It also presents new challenges to Sustainable Development Goal 2 (SDG 2), which aims to end hunger, achieve food security, improve nutrition, and promote sustainable agriculture.
Energy and Food: A Relationship That Extends Beyond Both Sectors
At first glance, an energy crisis may appear separate from the issue of food security. In reality, however, the relationship between the two is extremely close. Modern agriculture depends on energy to operate machinery, pumps, transportation systems, storage facilities, and refrigeration. Energy is also indirectly involved in the production of fertilizers, pesticides, and other agricultural inputs.
Consequently, higher oil and energy prices resulting from disruptions to maritime traffic can increase the costs of agricultural production, transportation, and storage, ultimately leading to higher food prices.
Rising maritime shipping and insurance costs can also increase the cost of importing grains, food products, animal feed, and other essential commodities. This may place additional pressure on domestic prices and reduce household purchasing power, particularly among low-income families.
Iraq’s Food Security Faces a New Test
Iraq possesses significant agricultural potential; however, achieving food security continues to depend on several factors, including domestic production, water availability, the efficiency of agricultural infrastructure, market conditions, and imports.
Global crises demonstrate the importance of avoiding excessive dependence on external sources for essential food commodities. The greater a country’s reliance on imports, the more vulnerable its food security becomes to transportation disruptions, fluctuations in global prices, and geopolitical crises.
The Strait of Hormuz crisis therefore raises a strategic question for Iraqi policymakers: To what extent can Iraq secure its food requirements if disruptions to international trade and rising transportation and energy costs persist?
The answer does not lie solely in increasing imports. Rather, it requires building a domestic productive base capable of sustainably meeting a greater share of the country’s food requirements.
Rising Transportation Costs and Their Impact on Consumers
One of the most serious indirect consequences of geopolitical crises is the increase in the cost of transporting goods. Food reaching consumers passes through a long supply chain that begins with production and continues through transportation, storage, distribution, and retail.
Any increase in fuel, insurance, or maritime shipping costs can gradually be transmitted through this chain to the final price paid by consumers.
In Iraq, rising food prices are not merely an economic issue; they also have significant social and developmental implications because low-income households spend a larger proportion of their income on food. Consequently, higher food prices may reduce their ability to spend on education, healthcare, housing, and other essential needs.
This highlights the direct relationship between SDG 2 and SDG 1, as rising food prices may intensify economic pressures on the most vulnerable groups and undermine efforts to reduce poverty and improve living standards.
Iraqi Agriculture as a Line of Economic Defense
Addressing the consequences of external crises cannot depend solely on pricing measures or increased imports. It also requires strengthening domestic agricultural production.
Iraq needs to develop its agricultural sector through the adoption of modern technologies, improved water-use efficiency, advanced irrigation systems, greater support for farmers, affordable access to production inputs, and better storage, transportation, and marketing systems.
Investment in food-processing industries also represents an important component of food security. Such investment adds value to locally produced agricultural products, reduces food losses, creates employment opportunities, and strengthens the domestic market’s ability to withstand disruptions in external supplies.
Building an integrated system extending from the farm to the consumer can therefore reduce the vulnerability of Iraq’s food security to international shocks.
Oil Revenues as an Opportunity to Finance Food Security
Disruptions in global oil markets may, under certain circumstances, lead to higher oil prices and generate additional revenues for Iraq. However, the real benefit of such revenues should not be limited to increasing consumption expenditure.
A portion of these additional financial resources could be directed toward developing the agricultural sector, establishing modern irrigation projects, upgrading storage facilities and grain silos, supporting cold-chain infrastructure, improving rural roads, and financing agricultural scientific research.
In this way, part of Iraq’s oil revenues could be transformed from temporary consumption-oriented income into productive investment that strengthens long-term food security.
Toward a More Sustainable Food Policy
Achieving Sustainable Development Goal 2 requires moving beyond the perception of food merely as a commodity available in markets and recognizing it as an integral component of national and economic security.
Food security does not simply mean the availability of food. It also means ensuring access to food at affordable prices, maintaining its quality and safety, ensuring the sustainability of its production, and strengthening the ability of the state and society to secure adequate supplies during times of crisis.
Agricultural policy should therefore be integrated with economic, trade, energy, and transportation policies, because food security is an interconnected system that cannot be achieved through the efforts of a single sector.
Conclusion
The Strait of Hormuz crisis demonstrates that food security is becoming increasingly interconnected with economic security, energy security, and the stability of global trade routes. Any disruption to maritime traffic can raise energy, transportation, and insurance costs, with these effects subsequently being transmitted to production costs, imports, and food prices.
For Iraq, these implications underscore the need to strengthen domestic agricultural production, diversify food supply sources, develop agricultural and food infrastructure, and utilize oil revenues to build a more resilient productive base.
Achieving Sustainable Development Goal 2 requires more than combating hunger. It requires building an Iraqi food system capable of withstanding external shocks and ensuring safe, affordable, and sustainable food for all members of society.
This is perhaps the most important message arising from the Strait of Hormuz crisis: the greater Iraq’s capacity to produce its food domestically, the less vulnerable it will be to fluctuations in global markets and the better able it will be to safeguard its economic and social security.