Farmers warn of 'food supply shocks' as Iran war disrupts global shippingThe ongoing conflict in Iran is affecting U.S. gas prices and could soon impact food costs, prompting the White House to consider measures like tapping the Strategic Petroleum Reserve and waiving the Jones Act.
he Iran war is beginning to affect Americans at home, with the White House exploring various strategies to mitigate the economic impact, including tapping the Strategic Petroleum Reserve and potentially waiving a shipping law to maintain the flow of energy and farm supplies.
Flames are tearing through oil tankers in the Persian Gulf as attacks on shipping threaten the Strait of Hormuz, one of the world's most crucial trade routes.
"It's something we're dealing with. We have been dealing with it. And don't need to worry about it," said Defense Department Secretary Pete Hegseth.
Hegseth said the U.S. military is working to keep the shipping lane open.
"The only thing prohibiting transit in the Strait right now is Iran shooting at shipping. It is open for transit, should Iran not do that. Now, there's a reason why we chose as one of our primary objectives to destroy the navy. We understood the ability to interdict shipping is something Iran has done for 40 years. It's key terrain,” Hegseth said.
The fighting is starting to ripple through the U.S. economy, with AAA reporting that gas prices nationwide are nearly 70 cents higher today than a month ago.
Farmers are now warning that food prices could be next.
"About 40 to 50% of some of the most needed fertilizers in the world travel through the Strait of Hormuz," said John Newton of the American Farm Bureau Federation.
The American Farm Bureau Federation is warning the president that disruptions to fertilizer shipments during the critical spring planting season could threaten crop production.
Key fertilizer materials, including urea, ammonia, nitrogen, phosphate and sulfur-based products, move through the Strait of Hormuz, and delays or price spikes could make it harder for farmers to secure the inputs they need to plant and grow crops.
The group warned that if fertilizer supplies become too expensive or difficult to obtain, some farmers may reduce fertilizer use or delay planting, which could lower crop yields and tighten food supplies later in the year.
"There's still time for farmers to adjust. But the longer this conflict persists, the longer that strait remains closed, the greater the consequences can be," Newton said.
Agriculture Secretary Brook Rollins addressed reporters on Friday, saying, "We're looking at every potential avenue to keep fertilizer costs down.".............
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