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The US–Israel–Iran Crisis and Its Impact on Halal Food Supply Chains in OIC Countries

The geopolitical conflict between the United States, Israel, and Iran in 2026 has not only affected political stability in the Middle East, but has also created major consequences for the global food system and the international halal economy. Rising tensions in the region have disrupted energy markets, maritime trade routes, and global food supply chains. For member states of the Organization of Islamic Cooperation (OIC), this situation has become a serious challenge, as many of these countries still rely heavily on imported food, energy, and international logistics systems that are vulnerable to geopolitical conflict.

In recent years, the halal economy has emerged as one of the fastest-growing sectors in the world. The halal industry is no longer limited to food and beverages, but also includes pharmaceuticals, cosmetics, tourism, logistics, and Islamic finance. Nevertheless, the halal food sector remains the backbone of the global halal economy. According to the DinarStandard report (2026), the global halal economy reached approximately US$2.43 trillion, with an annual growth rate of 8.3 percent. At the same time, OIC countries collectively represent an economy worth more than US$9 trillion, yet they continue to face high dependency on food imports and production technologies.

The Strait of Hormuz and Threats to the Global Food System

The US–Israel–Iran crisis demonstrates how geopolitical conflict can directly affect global halal supply chains. One of the most important factors is the strategic position of the Strait of Hormuz as a major global energy trade route. The strait is not only a channel for oil distribution, but also plays a significant role in the trade of fertilizers, agricultural raw materials, and international food logistics. As tensions escalated and the threat of a Hormuz blockade emerged, global shipping costs increased significantly. Oil prices surged, logistics costs rose, and food distribution experienced delays in various countries.

This situation directly impacts the global food system because modern agriculture heavily depends on energy and international maritime distribution. Disruptions in oil and fertilizer trade have led to rising food production costs, particularly for countries that depend on imported food commodities and fertilizers.

Halal Supply Chain Vulnerability amid Geopolitical Conflict

The halal industry possesses more complex supply chain characteristics compared to conventional food supply systems. Halal products, particularly meat, poultry, and processed foods, require stable cold chain systems throughout international distribution processes. Rising energy prices directly increase transportation and storage costs for halal products.

In addition, shipping delays may disrupt halal segregation systems and cross-border certification processes. Unlike conventional food supply chains, halal supply chains require sharia compliance at every stage of production and distribution. Slaughtering, processing, storage, and transportation processes must remain separated from non-halal elements.

The halal value chain demonstrates that halal systems have a higher level of sensitivity toward logistics disruptions and international trade instability compared to conventional supply chains. Therefore, during global geopolitical conflicts, the halal industry faces additional and more complex risks than ordinary food industries.

Food Dependency among OIC Countries

OIC member states are among the most vulnerable groups in this situation. According to the DinarStandard report (2026), several OIC countries entered 2026 with food deficits and a strong dependence on imported staple foods. This dependency makes Muslim-majority countries more vulnerable to rising global food prices and disruptions in international distribution systems.

In the GCC region, oil-exporting countries have benefited from rising energy prices. However, these advantages are accompanied by major strategic risks, particularly due to the region’s dependence on water desalination systems and stable maritime trade routes. Meanwhile, South and Southeast Asian countries face pressure on halal manufacturing, textile, and food sectors due to increasing logistics costs and weakening global economic stability.

The impact is even more severe in Sub-Saharan African OIC countries. Rising wheat and fertilizer prices have intensified food inflation risks and weakened public purchasing power. Disruptions caused by geopolitical conflict in energy trade and fertilizer distribution can create chain reactions throughout the international food system, particularly in developing countries that depend heavily on imports.

Digitalization and Halal Supply Chain Resilience

This crisis also reveals the fragility of international halal supply chain resilience. For many years, Muslim countries have remained dependent on global trade routes concentrated in certain regions and heavily influenced by international geopolitical dynamics. When these routes are disrupted, halal product distribution is also significantly affected.

However, developments in digital technology offer new opportunities for strengthening halal supply chains. Blockchain technology, the Internet of Things (IoT), and digital traceability systems can improve transparency and efficiency in halal logistics. These technologies allow halal certification and product tracking processes to be conducted more quickly and accurately, even amid international trade disruptions.

The digitalization of halal supply chains is becoming increasingly relevant as global Muslim consumers demand greater transparency and assurance regarding halal product integrity. In the context of geopolitical crises, digital systems can help maintain halal product integrity while simultaneously increasing consumer trust in the international halal market.

OIC Strategies in Responding to the Halal Supply Chain Crisis

The US–Israel–Iran crisis may become a transformative moment for the global halal economy. In a situation filled with uncertainty, OIC countries are beginning to recognize the importance of strengthening intra-OIC cooperation in food and halal trade sectors. Supply chain diversification, strengthening regional food production, and developing strategic food reserves are becoming increasingly important to reduce dependence on conflict-prone global markets.

In addition, strengthening Islamic finance may also become a strategic solution for OIC countries. Sharia-compliant financing instruments can support investments in agriculture, halal logistics, cold chain infrastructure, and national food security. In this way, the halal economy functions not only as a consumption sector, but also as a more resilient economic development instrument against global crises.

Conclusion

Ultimately, the US–Israel–Iran crisis demonstrates that the global halal economy is deeply influenced by international geopolitical dynamics. Disruptions in energy markets, trade routes, and global logistics directly affect the halal food sector and the economic resilience of Muslim countries.

This situation highlights the importance of developing stronger, more diversified halal supply chain systems based on regional cooperation. Amid growing global uncertainty, halal supply chain resilience is no longer merely an industrial issue, but has become part of the broader economic and food security strategy of OIC countries for the future.

– Written by Naflah –


References

DinarStandard. (2026). US–Israel–Iran Crisis: Business & Investment Scenarios for OIC Economies. Retrieved from https://www.dinarstandard.com/insights/us-israel-iran-crisis-business-investment-scenarios-for-oic-economies

Le Monde. (2026). Strait of Hormuz blockade poses threat to food security. Retrieved from https://www.lemonde.fr/en/environment/article/2026/04/14/strait-of-hormuz-blockade-poses-threat-to-food-security_6752400_114.html

Humanities and Social Sciences Communications. (2026). Modeling the halal value chain: A simulation-based approach. Nature. Retrieved from https://www.nature.com/articles/s41599-026-06724-z

Global Food Security. (2026). Food security amid geopolitical conflict and global supply chain disruption. ScienceDirect. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S2211912426000179