The crisis in the Strait of Hormuz is the latest shock that has revealed the world’s heavy dependence on a handful of production hubs and trade routes for energy, fertilizer, and food, and how rapidly a disruption in one region can spill over into global instability. Prolonged disruptions in strait traffic could lead to production decline and a new wave of global food inflation. This matters because in most countries, food accounts for 25% of household budgets. Food prices shape voters’ political choices worldwide. And trade disputes and regulatory barriers are fragmenting global supply chains, making them more expensive and less flexible.

Amid rising climate shocks and geopolitical uncertainty, countries need to diversify production, suppliers, and trade routes. And this must be backed by reliable information systems, resilient infrastructure, and predictable trade rules.

Torero’s policy recommendations can be found in his writings, interviews, and LinkedIn posts.