Global Fertilizer Prices Surge as Iran War Disrupts Strait of Hormuz Trade

The US-Israel war on Iran disrupted global agriculture as fertilizer prices skyrocketed due to the blockade of the Strait of Hormuz.

“Wikipedia Buenos Aires (Agenzia Fides) – The war in Iran is having repercussions in regions far removed from the countries directly involved in the conflict, including in Central and South America”

Agenzia Fides

The strait channels between 20% and 33% of global urea trade, and Middle Eastern suppliers represent a quarter of global exports.

Agenzia Fides

Prices for nitrogen fertilizer jumped between 11% and 25% in days.

American farmers faced escalating input costs just ahead of spring planting, already grappling with post-pandemic debt.

US farmers were caught on the wrong side as traders re-exported phosphate fertilizer.

Equipment retailers noted rising diesel costs, compounding the squeeze on farmers.

BBC

Fourth-generation Iowa farmer Mark Mueller said this is the perfect storm hammering farmers.

Prices jumped from $795 to $990 per ton of nitrogen fertilizer in weeks.

The war's fallout extended beyond fertilizers to water and food security.

“Bloomberg — Los cultivos alimentarios son cada vez más vulnerables a la escasez de suministro energético provocada por la guerra en Oriente Próximo, y los agricultores de Asia y Europa se enfrentan a la escasez de combustible necesario para el funcionamiento de la maquinaria esencial”

Bloomberg Línea

Desalination plants began shutting down after an Iranian missile strike damaged a facility in Kuwait.

The UN estimated 350 million people face heightened starvation risks due to food disruptions.

Fitch cut Saudi Arabia's rating, citing the impact of conflict on oil exports and geopolitical risks.