Russian Official Warns of Commodity Market Turmoil Over Hormuz Strait

A senior Russian official has warned of potential significant disruptions to global commodity markets should the Strait of Hormuz be closed.

Kirill Dmitriev, the Russian President's Special Representative for Investment and Economic Cooperation with Foreign Countries and head of the Russian Direct Investment Fund, highlighted the critical role of the Strait of Hormuz in global trade, particularly for fertilizers and agricultural products.

Dmitriev, commenting on statistics related to the proportion of fertilizer components supplied through the Strait of Hormuz, stated via social media that substantial disturbances in commodity and agricultural markets are anticipated in the near future, according to Russian news agency Sputnik.

The strait's significance lies in its function as a crucial link between the Persian Gulf, the Gulf of Oman, and the Arabian Sea, making it indispensable for fertilizer and agricultural trade, he noted.

The warning comes after an Iranian official reportedly claimed the Strait of Hormuz had been closed and threatened to target any ships attempting to pass through, further stating that Iranian forces would target oil pipelines belonging to what he described as "enemies," vowing to prevent oil exports from the region amid escalating tensions.

However, the U.S. military has stated that the Strait of Hormuz remains open.