Food prices set to rise in Gulf as Strait of Hormuz blockade stalls imports

Bahrain: Consumers across the Gulf are beginning to feel the economic impact of the ongoing regional conflict, as disruptions to key shipping routes drive up food prices despite supplies remaining available on supermarket shelves.

In Bahrain, shoppers report noticeable price increases in recent days. While there is no shortage of goods, staples such as meat have seen sharp rises, with some prices nearly doubling, according to residents. Like many Gulf nations, Bahrain relies heavily on imports for its food supply, leaving it vulnerable to external disruptions.

Strait of Hormuz Blockade Disrupts Trade

The crisis stems from the effective closure of the Strait of Hormuz, a vital artery for global trade, following escalating tensions triggered by Israeli-US strikes on Iran. The blockade has significantly disrupted cargo movement into the region, with major ports in United Arab Emirates, Qatar, Kuwait and Bahrain either suspending or reducing operations.

Air freight has also been affected, operating below capacity amid ongoing drone and missile attacks, further complicating supply chains. As a result, shipping has been diverted to ports south of the strait in Oman and parts of the UAE, while Saudi Arabia has emerged as a key logistics hub due to its access to the Red Sea and relatively stable transport links.

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Authorities in Saudi Arabia have introduced new logistics corridors to manage diverted cargo, while overland routes through neighbouring regions are being explored. However, these alternatives remain costly, congested, and insufficient to fully offset the disruption.

The impact is being felt unevenly across the Gulf. Saudi Arabia and the UAE have substantial reserves, while Qatar has strengthened its stockpiles since the 2017 blockade. In contrast, Bahrain and Kuwait are already seeing price pressures at the consumer level.

In Kuwait, the government has stepped in to freeze prices of essential goods and subsidise meat imports after initial panic buying. Officials reported that while overall prices remain stable, meat and fish costs have risen by more than 30 per cent due to halted imports and suspended fishing activity.

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Retailers are also taking measures to cushion the impact. The LuLu Group International said it has secured months of non-perishable stock and arranged dozens of charter flights to bring in fresh produce, absorbing additional costs for now.

Experts warn that while the situation is currently under control, prolonged disruption could trigger a broader inflationary spiral, particularly for imported food items, posing a growing risk to economic stability across the region.