How Strait of Hormuz Escalation Affects Milk & Dairy Prices
🥛 Milk & Dairy prices could rise up to +26.8% in 🇵🇰 Pakistan under a full pass-through scenario driven by Strait of Hormuz Escalation (Feb 2026 – Present*).
Scenario ceiling only. All figures show an upper-bound assuming 100% pass-through. Actual retail prices depend on competition, subsidies, logistics, and market structure.
Commodity shocks driving this scenario
Top 5 most affected countries
Energy import-dependent, exposed to oil +54% and shipping +150%, already fragile fiscal position
Suez Canal trade disruption, EGP fell 10% in one month, fuel and food import costs surged with Brent +54%
Imports all refined fuel despite oil production, shipping cost surge amplifies every imported good
TRY hit record lows (–17% in 2 months), heavy energy import dependence, Middle East trade disruption
Imports 100% of petroleum, PHP fell to record low vs USD, declared national energy emergency
Bottom 5 least affected countries
Major commodity exporter, partially insulated by domestic oil production, BRL relatively stable
Subsidized fuel prices buffer consumer impact, IDR declined modestly (–1%)
Third-largest oil importer, $11B foreign portfolio outflow in March, INR hit record low at 94.4
Diversified energy sources, MAD weakened 3% but government subsidies active
Already in wartime economy, Hormuz disruption adds energy cost pressure via global benchmarks
Important caveats
- All figures assume 100% pass-through of upstream cost changes. In practice, realized impacts are typically 55-75% of the ceiling.
- Government subsidies, price controls, and strategic reserves can significantly reduce actual consumer impacts.
- Rankings reflect structural vulnerability (import dependence, FX exposure) rather than real-time prices.
- Within-country variation (urban vs rural, coastal vs inland) is not captured at this resolution.