The OECD and the Food and Agriculture Organization (FAO) have warned that the ongoing conflict in the Middle East is likely to drive up prices for agricultural commodities in the short term.
The multilateral bodies outlined the risk in their latest Agricultural Outlook 2026-2035 report, highlighting how geopolitical instability is translating into tangible supply-side pressures for global food markets.
Oil executives have previously warned of potential jet fuel shortages in key markets, underscoring the interconnected nature of energy and agricultural supply chains.
According to the report, the conflict poses a direct threat to cereal production, with potential output declines expected in the near term.
While the organizations project a recovery in agricultural production by 2035, the immediate outlook remains clouded by the risk of supply disruptions stemming from the region's instability.
This assessment aligns with broader market concerns regarding the Middle East conflict, which has already intensified fears over energy supplies.
Oil executives have previously warned of potential jet fuel shortages in key markets, underscoring the interconnected nature of energy and agricultural supply chains.