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Iran conflict disrupts fertilizer supply, causing prices to soar and raising food security concerns globally.

Market News
25 Mar 2026
CNBC
View Source
Bearish
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The ongoing conflict involving Iran has severely disrupted fertilizer shipments through the Strait of Hormuz, a key route for about one-third of the world's seaborne fertilizer trade. This disruption has caused fertilizer prices, especially for nitrogen-based products like urea, to spike by up to 50%, threatening agricultural yields worldwide. With farmers in the northern hemisphere entering their critical planting season, shortages could lead to lower crop production and increased food inflation, particularly impacting poorer countries and emerging markets. The situation is considered more severe than previous fertilizer supply shocks, such as those caused by the Russia-Ukraine conflict, due to the broad regional impact and the essential role of nitrogen fertilizers in crop growth.

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