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Hormuz Crisis Has Ripple Effects: “We Fear Hunger”
Six months after the escalation in the Gulf, higher fuel and fertiliser prices have made it more expensive to produce food, transport goods and deliver humanitarian aid in countries where Norwegian Church Aid operates. In Ethiopia, food prices have risen by 15 per cent. The organisation now fears that a prolonged crisis could develop into a regional food crisis.
Drought-affected Tigray: Two women walk along a road in a drought-affected area of Tigray, Ethiopia. Norwegian Church Aid fears that a prolonged crisis around the Strait of Hormuz could worsen the food crisis and affect people far beyond the conflict zone. Photo: Kedija Sefa Mohammed, Norwegian Church Aid
“The crisis in and around the Strait of Hormuz is being felt far beyond the conflict zone. When fuel and agricultural inputs become more expensive, it affects people who already have very little to fall back on. We fear that a prolonged crisis could have serious consequences for food security,” says Anne Cecilie Kaltenborn, Secretary General of Norwegian Church Aid.
In February, the United States and Israel attacked Iran. Iran has since blocked the Strait of Hormuz, one of the world's most important oil shipping routes. This has contributed to higher energy and transport costs, which are now being felt in several countries.
24–48 hours waiting for fuel
In Ethiopia, which is already affected by drought and other humanitarian crises, fuel shortages and rising prices have made everyday life more difficult.
“For our transport staff, this has meant long waits at petrol stations, and some have even waited up to 48 hours. The queues have stretched for several kilometres,” says Margrethe Volden, Country Director for Norwegian Church Aid in Ethiopia.
Fuel availability has improved somewhat, but high prices and continued uncertainty are still making operations more challenging.
“We have had to prioritise more carefully and find solutions that require as little transportation as possible. This makes it more difficult to plan and carry out our work,” says Volden.
Fears consequences for food production
What concerns Norwegian Church Aid most is how rising costs could affect food production.
Ethiopia is an important grain producer in East Africa. Higher fuel and fertiliser prices make it more expensive for farmers to produce and transport food. At the same time, food prices have already increased by 15 per cent since the conflict began.
“When both food and fuel prices rise, it becomes harder for families who already spend a large share of their income on food. If this situation continues, the consequences could be severe, not only for Ethiopia, but for food security across the region,” says Kaltenborn.
The situation is particularly serious in areas already affected by drought and conflict.
“In Gambela in the southwest and Tigray in the north, the situation is critical. Tigray has experienced prolonged instability and drought. When prices are also rising sharply, we are deeply concerned about the impact on local communities,” says Volden.
Local partners keep aid moving
Despite the challenges, Norwegian Church Aid has so far managed to maintain its operations in Ethiopia. An important factor is its cooperation with local organisations that are already present in the communities.
“It is a major strength that we work closely with local partners. They know the communities and the people we aim to reach and can often carry out activities with less need for transportation. This is crucial when a crisis like this occurs,” says Volden.
The situation cannot continue indefinitely
“The uncertainty makes it difficult to plan normal operations. We cannot work like this over the long term. Employees must be able to earn a salary they can live on, even when prices rise sharply,” says Volden.
Norwegian Church Aid therefore stresses the urgent need for a political solution to the conflict.
“We cannot underestimate how far the ripple effects of a conflict can reach. A political solution is urgently needed. The longer the crisis continues, the greater the risk that it will develop into a serious food crisis for people far away from the conflict zone,” says Kaltenborn.
FACTS: Norwegian Church Aid in Ethiopia
- Norwegian Church Aid has worked in Ethiopia since 1974.
- The organisation works on access to clean water, sanitation, climate action, peacebuilding and long-term development through local and faith-based partner organisations.
- Norwegian Church Aid works in partnership with faith-based and local organisations to strengthen civil society and support vulnerable groups, particularly women and young people.
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