Fact Check Team: Fertilizer supply chains remain fragile as Iran conflict drags on
The conflict involving Iran is disrupting global fertilizer supply chains, particularly nitrogen-based fertilizers, due to energy and shipping disruptions in the Strait of Hormuz. Urea prices have surged nearly 60% since the conflict began, potentially leading to a broader food crisis if farmers reduce fertilizer use.
The war involving Iran is disrupting global fertilizer markets due to energy and shipping disruptions centered around the Strait of Hormuz. Roughly 70% of nitrogen fertilizer production relies on natural gas. Ship traffic through the Strait of Hormuz has slowed dramatically, with the UN reporting a nearly 95% collapse since late February. Urea prices have surged nearly 60% since the conflict began, rising from $450 per ton to over $700 per ton. Countries in Asia, such as Pakistan, Japan, and India, are highly exposed to these disruptions due to their dependence on Persian Gulf energy imports. Brazil is also vulnerable, importing 80-90% of its fertilizer supply from the region.
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