Israel-Iran conflict could impact global fertilizer prices
Fertilizer prices could jump soon, thanks to rising tensions between Israel and Iran.
The conflict is putting the Strait of Hormuz—a major shipping route for ammonia and urea—at risk.
Gulf countries such as Qatar, Saudi Arabia and Iran account for roughly a quarter of global nitrogen exports (primarily urea), and the broader region, including countries such as Egypt and Bahrain, supplies more than one-third.
What is the risk?
About 25-35% of the world's ammonia and urea shipments pass through this narrow waterway.
If things get disrupted, about half of seaborne sulfur trade could be affected and urea shipments could be significantly disrupted, which would hit countries like India, Brazil, Southeast Asia, and the US hard—especially farmers counting on these imports.
What does it mean for India?
If fertilizer gets pricier or scarce, India's farming costs could soar and crop production might take a hit during key seasons.
That means higher prices for basics like wheat, corn, and soybeans—not just in India but worldwide.
With only limited backup routes available to ship these goods around trouble spots, everyone from farmers to shoppers could end up feeling the pinch.