08.03.2026 11:12
The crisis in the Strait of Hormuz and the shutdown of production facilities in the region have impacted the global fertilizer market. While urea prices have risen to $575-635, warnings have been issued that both fertilizer and food prices could increase if shipments are disrupted. It is predicted that the yield of staple crops will decrease without nitrogen fertilizer, leading to a drop in production.
The escalating war between the US-Israel and Iran is increasingly affecting the global economy. The tensions in the Strait of Hormuz and the shutdown of production facilities in the region have led to significant fluctuations in the global fertilizer market. Experts warn that if shipments are disrupted, both fertilizer prices and food costs could rise.
The suspension of production of strategic products such as urea, polymers, methanol, and aluminum by Qatar's energy giant QatarEnergy has increased supply shortages in the market. Following these developments, the price of urea, a key indicator in the global fertilizer market, has risen to between $575 and $635 per ton.
GLOBAL SHIPMENTS AT RISK
The effective closure of the Strait of Hormuz directly affects the transportation of ammonia and nitrogen, which are essential components in synthetic fertilizer production. While the Gulf region hosts some of the world's largest fertilizer production centers, it is stated that a prolonged disruption in transportation could hinder production and increase costs.
Iran, which has a significant share in the global nitrogen fertilizer production, also plays a key role in the global market. After Russia, Egypt, and Saudi Arabia, Iran is the fourth largest exporter of urea, the most widely used type of nitrogen fertilizer.
PRICES SOAR IN THE US
With the onset of the war, there has been a rapid increase in fertilizer prices in the US as well. Although the country has a large domestic production, it meets a significant portion of its fertilizer needs through imports. According to analysts, the price of fertilizer at the import center in New Orleans, which was $516 per ton, quickly rose to $683.
Experts warn that if the crisis in the Persian Gulf continues and shipments do not arrive in time for the spring planting season, prices could rise even further.
AN $80 INCREASE IN THE GLOBAL MARKET
The rise in fertilizer prices is not limited to the US. India also sources more than 40% of its urea and phosphate fertilizers from the Middle East. Supply issues in the region have negatively affected both imports and domestic production.
Analysts note that the global fertilizer market was already tight before the Iran war began due to China's export restrictions and European producers reducing production due to cuts in Russian gas. With the latest developments, it is stated that urea prices have increased by approximately $80 per ton compared to pre-war levels.
FOOD PRODUCTION MAY BE AT RISK
More than 180 million tons of nitrogen fertilizers are produced worldwide each year. Natural gas accounts for approximately 70-80% of the production cost of nitrogen fertilizers. Therefore, increases in natural gas prices directly reflect on fertilizer prices.
Experts indicate that without nitrogen fertilizers, the yields of essential agricultural products such as wheat, corn, and rice would significantly decrease. Therefore, it is stated that prolonged disruptions in fertilizer production could negatively impact global food production.
FOOD AND FEED COSTS MAY RISE
According to experts, approximately half of global food production relies on the use of synthetic nitrogen fertilizers. In the event of a contraction in fertilizer supply, prices of staple food products such as bread, pasta, and potatoes may rise, and animal feeds may become more expensive. This situation is expected to increase cost pressures in the agricultural sector and may force farmers to change their production plans.
Source: Sabah, Takvim