Food prices may surge if war exceeds 40 days: FAO

The United Nations Food and Agriculture Organisation (FAO) has warned that food prices could surge if the Middle East conflict exceeds 40 days, as rising fuel and fertiliser costs are already driving up international food prices.

According to the FAO's Food Price Index, global food prices increased by an average of 2.4 per cent in March compared to February, primarily due to high fuel oil prices.

FAO chief economist Maximo Torero said price increases since the war began have so far been moderate. However, if the conflict continues beyond 40 days and fertiliser prices remain high, farmers will face difficult conditions.

The war, which began on February 28, entered its 35th day on Friday. Torero said farmers will be forced to choose between using less fertiliser on the same land, reducing cultivation, or switching to crops requiring less fertiliser. This will lead to lower yields in the future, significantly impacting food supply and prices for the rest of this year and next.

According to the UN agency's index, vegetable oil prices have seen the sharpest increase due to the war—up 5.1 per cent from February. Palm oil prices have reached their highest level since mid-2022 due to rising crude oil prices.

The month-long war has disrupted the global economy, affecting millions of people. Both sides are now targeting economic and industrial zones, raising fears of a collapse in global fuel supply. The impact of the war is deepening beyond the battlefield.

There is no clear indication from the US, Israel or Iran of any de-escalation. Donald Trump has threatened to intensify strikes on Iran. In a post on Truth Social, he said Washington has not even begun to 'destroy' the remaining infrastructure in Iran, adding that bridges and power plants would be targeted.

In response, Iranian Foreign Minister Abbas Araghchi said in a post that Iranians cannot be forced to surrender by striking bridges and civilian infrastructure.

Israel reported on Friday that Iran had fired a barrage of missiles at several locations in the country. One cluster missile went off target, damaging some houses and vehicles.

The military said its air defence systems had been activated to intercept the new missiles. No immediate casualties were reported. Emergency services said a railway station in Tel Aviv suffered some damage from shrapnel from one missile.