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Oil prices went down on Wednesday.
The West Texas Intermediate for July delivery lost 5.21 U.S. dollars, or 5.55 percent, to settle at 88.68 dollars a barrel on the New York Mercantile Exchange. Brent crude for July delivery dropped 5.29 dollars, or 5.31 percent, to settle at 94.29 dollars a barrel on the London ICE Futures Exchange.
Crude futures settle lower
The world faces a potential food security crisis unless action is taken on shipping disruptions in the Strait of Hormuz, warned director-general of the UN Food and Agriculture Organization (FAO) Qu Dongyu on Tuesday in Rome.
The FAO said in a statement that serious disruptions to shipping in the Strait of Hormuz have hampered deliveries of oil, liquefied natural gas, and fertilizers, pushing up agricultural input costs.
Seed prices are also rising because seed production relies on fertilizers. Higher energy costs, the agency added, have driven up operating expenses for agrifood systems worldwide.
Regional tensions have escalated since the United States and Israel launched joint attacks on Iran in late February, triggering retaliation from Tehran against Israel as well as U.S. bases and assets in the Middle East, along with the closure of the Strait of Hormuz.
The blockade of the Strait of Hormuz, a critical strategic corridor handling one-quarter of global seaborne oil trade, as well as significant volumes of liquefied natural gas and vital fertilizers, have throttled global energy flows and caused fertilizer prices to spike.
Disruption in Strait of Hormuz could trigger global food security crisis: FAO
