Trade
ICC is supporting a new confidence-building mechanism developed by the UN Secretary-General’s Strait of Hormuz Task Force to facilitate safe, orderly and predictable maritime transit through one of the world’s most critical trade routes.
The proposed mechanism establishes a practical framework for the registration, deconfliction, prioritisation, facilitation, monitoring, verification and reporting of vessel movements through the Strait, with an initial focus on fertilisers and related raw materials.
A statement issued by United Nations Office for Project Services (UNOPS) Executive Director Jorge Moreira da Silva, who coordinates the UN Strait of Hormuz Task Force, highlights the urgent need for such practical action amid continued disruption to shipping which is putting global supply chains, livelihoods and food security at risk.
Building on ICC’s role in the Black Sea Grain Agreement in 2022, Mr Denton participates in the Hormuz Task Force, working alongside UNOPS, United Nations Trade and Development (UNCTAD) and the International Maritime Organization (IMO), with cooperation from other UN agencies.
Responding to the statement, Mr Denton said: “Continued disruption to shipping through the Strait is putting enormous pressure on global food security and economic stability. ICC’s engagement in the Task Force reflects the critical role of the private sector in working with partners to deliver practical solutions to issues impacting global trade flows and the lives and livelihoods of people everywhere who depend on them.”
The Task Force’s proposed mechanism is designed to provide a structured process for facilitating the movement of vessels through the Strait while building confidence among relevant parties. It is time-bound, exceptional and limited in scope, respects the rights and obligations of states under international law, and does not transfer sovereign authority to any participating party.
The mechanism comes as maritime traffic through the Strait has fallen by more than 95% compared with pre-war levels, according to the UNOPS statement. Rising energy, fertiliser and transport costs are putting additional pressure on farmers and consumers, while the UN World Food Programme estimates that almost 45 million people could fall into acute food insecurity as a result of the disruption.
ICC has consistently warned that disruption to the movement of energy, fertilisers and other essential goods through critical trade routes can have consequences far beyond the immediate region, putting further pressure on global supply chains and economic stability.
In his statement Mr Moreira da Silva said: “It is time to give a chance to an operational mechanism to build confidence and trust… There is no peaceful path through further escalation. The immediate priority must be to reduce risks, protect civilians and civilian infrastructure, build trust and confidence and restore safe and predictable movement through the Strait.”
Listen on: Spotify, Apple Podcast and Amazon Music
Geopolitical shocks can disrupt food, fertiliser and other critical agricultural input markets, but history has taught us that export restrictions often make a bad situation even worse. This ICC policy paper examines how export restrictions amplify shortages, raise prices and undermine food security, while offering practical recommendations to keep global agricultural trade flowing in times of crisis.
ICC-commissioned modelling finds that severe and sustained disruption could also contribute to around one million additional diet-related deaths in 2030 and leave 67 million more people underweight. Coordinated public and private sector action is needed to keep fertilisers and agricultural inputs flowing and prevent disruptions from deepening food insecurity.
The closure of the Strait of Hormuz in February 2026 severed a critical chokepoint for fertiliser and agricultural input trade. New research reveals the severity of this compound crisis spanning physical supply, commercial viability and farm-level demand. This ICC policy brief outlines key priorities for policy and industry action to safeguard global food security.
