Global food prices rose to their highest level since September in March, fueled by higher energy costs linked to the West Asia conflict. The United Nations' Food and Agriculture Organization cautioned that a prolonged war could reduce planting and yields, affecting supplies and prices through this year and beyond.
The FAO Food Price Index climbed in March, marking the highest point since September, primarily due to surging energy costs stemming from the West Asia conflict, which includes tensions described as the Israel-Iran war. This rise has raised concerns over global cereal supplies and higher fertiliser costs, key drivers of food inflation. FAO officials warned that if the conflict persists, farmers may cut back on planting, leading to lower future yields. Such disruptions could strain food supplies throughout the year and into the next, exacerbating price pressures worldwide. The organisation highlighted the vulnerability of global food markets to geopolitical tensions in West Asia, urging attention to these risks amid ongoing hostilities.