Iran's blockade of shipping routes through the Strait of Hormuz has disrupted global fertiliser supplies, raising alarms over a potential surge in food prices worldwide. The chokepoint, a critical artery for the movement of urea, ammonia and other agricultural inputs, has left vessels stranded and farmers facing rising costs.
British outlet The Guardian reported that the closure is affecting nearly a third of seaborne fertilizer trade, compounding pressures from ongoing geopolitical tensions in the Middle East.
Fertiliser costs soar amid blocked shipping lanes
According to The Wall Street Journal, maritime intelligence shows hundreds of fertilizer-laden ships accumulating in the Persian Gulf, unable to reach international markets. The UN Food and Agriculture Organization (FAO) also warned that traffic through the Strait has dropped by over 90%, effectively halting shipments essential for global food production.
The surge in transport costs and insurance premiums has driven nitrogen-based fertilizers up by roughly 30%, analysts say, intensifying challenges for farmers in North America, Europe, and Asia. Fresh Fruit Portal highlighted that the timing is particularly critical as many regions approach peak planting season.
Implications for food security
Rising fertilizer prices directly influence crop yields, with staples such as wheat, corn, and rice at risk. Forbes reported that global food prices climbed in March, citing the conflict in Iran and the resultant spike in energy and fertilizer costs. Market experts warn that prolonged shortages may force farmers to reduce fertilizer usage, potentially lowering harvests and tightening global grain stocks.
The situation is compounded by energy market disruptions, as the strait handles roughly 20% of global oil and gas shipments, which World Economic Forum analysts say could further escalate costs throughout food supply chains.
International efforts are underway to ease the crisis. The Guardian noted that a coalition of more than 40 countries, led by UK officials, is exploring diplomatic measures and humanitarian corridors to ensure the safe passage of food and fertiliser shipments.
Experts from the ETC Group caution that continued restrictions on fertiliser and fuel access could trigger a serious global food crisis unless supply chains are diversified and local food systems strengthened.
