Food Prices Worldwide Hit 3-Year High: The Impact of Supply Chain Disruptions Caused by the US-Iran Conflict

Global food prices have reached their highest levels in the last three years. According to the Food and Agriculture Organization (FAO)—an agency affiliated with the United Nations (UN)—the Food Commodity Price Index rose by 1.6% in April 2026.

This represents a 2.5% increase compared to last year. The primary driver behind this surge is the ongoing conflict between the United States and Iran. The UN has also issued a warning regarding the likelihood of further price hikes.

Closure of the Strait of Hormuz Exacerbates Difficulties

The conflict involving Iran has now completed its tenth week. Consequently, the Strait of Hormuz—a vital shipping lane—remains closed. The movement of essential agricultural inputs, such as diesel and fertilizers, through this route has come to a standstill.

With fertilizers and fuel becoming more expensive, farming is becoming increasingly difficult for farmers; this situation is expected to have a direct impact on the prices of food items in the near future.

Vegetable Oil and Meat Prices See the Sharpest Rise

According to the report, vegetable oils have been the most affected category. Rising crude oil prices have fueled an increased demand for biofuels, resulting in a 5.9% rise in vegetable oil prices compared to March. This marks the highest level recorded since July 2022.

Meanwhile, meat prices have risen by 1.2%, setting an all-time record high. A 0.8% uptick has also been observed in grain prices.

Apprehensions Over Declining Grain Yields

Adverse weather conditions, coupled with reports indicating a reduction in wheat sowing for the 2026 season, have further driven up grain prices. Due to the escalating cost of fertilizers, farmers are now considering cultivating crops that require minimal fertilizer application.

Experts believe that while it may take some time for the impact of this surge in the commodity market to filter down to the retail market, a rise in food inflation is now considered inevitable.