Food prices likely to rise due to Iran war, farmers’ union says

Food prices likely to rise due to Iran war, farmers' union says
Food prices likely to rise due to Iran war, farmers' union says

The cost of food is once again under pressure — and this time, the warning signs are coming directly from farmers. As tensions escalate in the Middle East, agricultural leaders are raising the alarm that the ongoing Iran conflict could trigger a fresh surge in food prices across the UK and beyond.

From rising fertiliser costs to disrupted shipping routes and skyrocketing energy prices, the chain reaction has already begun. Farmers’ unions say the impact is unavoidable — and consumers could soon feel it at the supermarket checkout.


Why Farmers Are Warning About Food Price Increases

The warning from farming groups isn’t speculation — it’s based on real, measurable cost increases happening right now.

The National Farmers’ Union (NFU) and agricultural experts say the Iran war is affecting food production in three key ways:

  • Rising fuel costs
  • Fertiliser shortages and price spikes
  • Supply chain disruption

Farmers rely heavily on all three. When those costs go up, food prices inevitably follow.

According to reports, fertiliser prices have surged dramatically — with some types rising by more than 50% year-on-year. At the same time, farmers are paying more to run machinery, transport goods, and maintain operations.

One UK farmer summed it up bluntly: “The sums don’t add up anymore.”


The Strait of Hormuz: A Global Bottleneck

At the heart of the issue lies one of the world’s most important shipping routes — the Strait of Hormuz.

This narrow waterway handles roughly 20% of global oil and gas supplies, making it critical to the global economy.

But the ongoing conflict has effectively disrupted traffic through the strait, creating a ripple effect across multiple industries.

Why This Matters for Food

  • Oil powers farm machinery
  • Gas is essential for fertiliser production
  • Shipping routes carry agricultural inputs and food

When the strait is disrupted, everything becomes more expensive — from growing crops to transporting them.

The result? Higher prices at every stage of the food supply chain.


Energy Prices Are Driving Food Inflation

One of the biggest drivers of rising food prices is energy.

Since the conflict began, oil prices have surged past $100 per barrel, with some estimates suggesting they could climb even higher.

This affects food in several ways:

1. Farming Costs Increase

Tractors, irrigation systems, and harvesting equipment all depend on fuel.

2. Transport Becomes More Expensive

Food must be moved from farms to warehouses to supermarkets.

3. Storage Costs Rise

Refrigeration and processing require electricity and gas.

As energy prices climb, these costs are passed down the chain — eventually reaching consumers.


Fertiliser Crisis: The Hidden Threat

While fuel prices get most of the attention, fertiliser may be the bigger long-term issue.

The Iran war has disrupted key exports of fertiliser ingredients such as urea and sulphur, which are essential for crop growth.

  • Fertiliser prices have jumped 30–40% globally
  • Some production facilities have halted operations
  • Supply shortages are emerging ahead of planting season

This creates a dangerous situation.

Lower Fertiliser = Lower Crop Yields

Farmers may:

  • Use less fertiliser
  • Delay planting
  • Switch to less productive crops

All of this leads to reduced food supply — which pushes prices even higher.


Farmers Are Already Feeling the Pressure

Across the UK, farmers are facing a perfect storm of rising costs and uncertainty.

Many are being forced to make difficult decisions:

  • Cutting back on fertiliser use
  • Reducing livestock numbers
  • Increasing prices to stay afloat

Some farmers warn that they may not break even this year if conditions worsen.

This isn’t just a short-term issue — it could affect future harvests and long-term food availability.


Global Impact: Not Just a UK Problem

The effects of the Iran war are being felt worldwide.

Countries across Europe, Asia, and beyond are experiencing similar challenges:

  • Food and fuel prices rising simultaneously
  • Governments releasing energy reserves
  • Emergency measures to control inflation

In Australia, experts warn the crisis is already feeding into a cost-of-living surge, with food prices expected to rise sharply.

Meanwhile, global food insecurity could reach record levels, with millions more people at risk of hunger.


How the War Disrupts the Entire Food System

To understand why food prices rise so quickly during conflicts, it helps to look at the bigger picture.

The Food Supply Chain Includes:

  1. Raw inputs (fertiliser, seeds, fuel)
  2. Farming and production
  3. Processing and packaging
  4. Transportation
  5. Retail

The Iran war is disrupting every single stage.

For example:

  • Fertiliser shortages affect crop growth
  • Fuel price increases raise transport costs
  • Shipping disruptions delay imports

When all these pressures hit at once, prices rise rapidly.


UK Households Could Feel the Impact Soon

Experts warn that British consumers may start seeing higher prices within weeks — especially for everyday items.

Most Likely to Increase:

  • Bread and cereals
  • Meat and dairy
  • Fruit and vegetables
  • Cooking oils

Food inflation is expected to rise alongside energy bills, creating a double burden for households.

Some forecasts suggest overall inflation could climb significantly if the conflict continues.


The Cost-of-Living Crisis Could Deepen

For many families, food is already one of the biggest household expenses.

Now, with energy bills also rising, the pressure is intensifying.

The combination of:

  • Higher food prices
  • Rising fuel costs
  • Increased mortgage rates

could create a prolonged cost-of-living crisis.

This is particularly concerning for low-income households, who spend a larger share of their income on essentials.


Lessons From Past Conflicts

This isn’t the first time war has driven food prices higher.

Previous Examples:

  • Russia–Ukraine war (2022): Grain shortages and global food inflation
  • 1973 oil crisis: Massive spike in food and fuel costs
  • COVID-19 pandemic: Supply chain disruptions

Each time, the pattern is similar:

  1. Energy disruption
  2. Supply chain breakdown
  3. Rising production costs
  4. Higher consumer prices

The Iran war is following the same trajectory — but potentially on a larger scale.


What Happens If the Conflict Continues?

If the situation escalates or drags on, the impact could become even more severe.

Possible Scenarios:

  • Sustained high oil prices
  • Long-term fertiliser shortages
  • Reduced global crop yields
  • Increased food insecurity

In the worst-case scenario, some regions could face food shortages — not just higher prices.


What Governments Are Doing

Governments are already taking steps to manage the fallout:

  • Releasing emergency oil reserves
  • Offering financial support to farmers
  • Exploring alternative supply routes

However, these measures may only provide temporary relief.

Long-term solutions depend on stabilising the conflict and restoring supply chains.


What Consumers Can Expect

For shoppers, the changes may happen gradually — but they will be noticeable.

Signs to Watch:

  • Smaller product sizes (shrinkflation)
  • Higher supermarket prices
  • Fewer discounts and promotions

Retailers often absorb some costs initially, but sustained increases are eventually passed on.


How to Prepare for Rising Food Prices

While consumers can’t control global events, there are ways to manage the impact.

Practical Tips:

  • Plan meals to reduce waste
  • Buy in bulk where possible
  • Switch to seasonal produce
  • Compare supermarket prices
  • Freeze food to extend shelf life

Small changes can help offset rising costs over time.


The Bigger Picture: A Fragile Global System

The Iran war has highlighted just how interconnected the global food system is.

A conflict thousands of miles away can:

  • Raise prices in UK supermarkets
  • Affect farmers’ livelihoods
  • Increase global hunger

It’s a reminder that food security depends not just on agriculture — but on geopolitics, energy, and trade.


Conclusion: A Warning That Shouldn’t Be Ignored

Farmers’ warnings about rising food prices are not hypothetical — they are grounded in real economic pressures already unfolding.

With energy markets disrupted, fertiliser supplies constrained, and global trade routes under strain, the conditions for food inflation are firmly in place.

The key question now is not if food prices will rise — but how much and for how long.

For households, businesses, and policymakers alike, the coming months will be critical.

One thing is certain: the impact of the Iran war will be felt far beyond the battlefield — right down to the weekly grocery bill.