Strait of Hormuz Closure Disrupts Global Fertilizer Supply Chains

The effective halt of maritime traffic through the Strait of Hormuz since February 28, 2026, is affecting the movement of fertilizer and related raw materials worldwide. This development is impacting global agricultural supply chains as the spring planting season begins in the Northern Hemisphere.

Roughly one-third of the world’s fertilizer trade relies on transit through the Strait of Hormuz, which is now blocked due to the ongoing Middle East conflict. Fertilizer shipments from major producers in the Gulf region, including Qatar, Saudi Arabia, the United Arab Emirates, Iraq, and Iran, have been affected as increased war-risk premiums and insurance withdrawals have made shipping economically unfeasible.

Key raw materials such as ammonia, phosphates, and sulfur are exported in large quantities from the Gulf, with 27% of global ammonia, 22% of phosphates, and 45% of sulfur shipments originating from this region. The disruption has forced cargo ships to remain in the Gulf or take longer routes around Africa, further straining supply chains for fertilizer and oil-derived products.

Production at fertilizer plants has also been interrupted. Iranian manufacturers have suspended operations at all urea and ammonia facilities, while Egypt has halted urea production due to gas supply issues. In addition, Israel has suspended activity at the Leviathan and Karish gas fields as a precautionary measure.

What the numbers show

• U.S. urea prices increased by $70 per short ton in one week, reaching $550
• Granular urea in Egypt rose nearly 27% to $620 per metric ton
• India’s urea prices climbed by about $80 per tonne from pre-conflict levels
• Saudi Arabia supplied 39% of U.S. phosphate imports in 2024
• The U.S. imported 16% of its urea from Qatar and Saudi Arabia in 2024

The Persian Gulf region is a major supplier of nitrogen fertilizer, accounting for over one-third of global trade in this category. In 2024, the United States imported 25% of its total fertilizer needs, including 97% of potash, 18% of nitrogen, and 13% of phosphate, with Saudi Arabia, Israel, Egypt, and Jordan providing substantial portions of these imports.

India’s fertilizer sector is also highly dependent on the Gulf, importing nearly 40% of its fertilizer and about 30% of raw materials such as rock phosphate and potash from the region. The country’s fertilizer industry is particularly sensitive to disruptions in Middle Eastern energy supplies, as it sources 50–55% of its crude oil and liquefied natural gas from the area.

The closure of the Strait of Hormuz is affecting fertilizer availability during critical planting periods in both the United States and India. The start of the Northern Hemisphere’s spring planting and India’s kharif sowing season coincide with these disruptions, increasing the impact on agricultural planning and input costs.

The conflict has also led to concerns about global food security, as interruptions in fertilizer and energy supply chains can affect crop production and distribution. The cascading effects of the Strait’s closure extend beyond fertilizers to oil and liquefied natural gas shipments, amplifying challenges for farmers and food producers worldwide.

* This article is based on publicly available information at the time of writing.