Iran War Cuts 36% of Global Urea Supply, Threatening Crop Output
Updated
Updated · OilPrice.com · May 18
Iran War Cuts 36% of Global Urea Supply, Threatening Crop Output
11 articles · Updated · OilPrice.com · May 18
Persian Gulf disruptions have choked off major fertilizer flows, including 36% of global urea, 29% of anhydrous ammonia and 26% of diammonium phosphate, raising the risk of lower yields in the next growing season.
The shock is spreading through energy as well: 20% of global LNG exports from the Gulf are offline, squeezing feedstock for nitrogen fertilizer plants in import-dependent countries such as India.
Farmers are already adjusting. Argentine wheat growers are considering using less urea or switching crops, while an Egyptian farmer cut planted area by half and dropped wheat because fertilizer and chemical costs surged.
The pressure is broadening beyond fertilizer prices alone, with the American Farm Bureau Federation saying 70% of U.S. farmers cannot afford all the fertilizer they need and high diesel costs threatening future planting decisions.
The report argues the supply loss could expose wider limits across the global economy, because ammonia, steel, cement and plastics all depend heavily on fossil fuels now disrupted by the war.
How will the world prevent mass starvation for the 1.8 billion people whose food supply is now at risk?
As the global economy falters, will this crisis force a permanent shift to renewable energy or a desperate return to fossil fuels?
With the dollar system in crisis, is China's renminbi poised to become the new global reserve currency?
The 2026 Strait of Hormuz Disruption: Fertilizer Price Surges, Food Security Risks, and Lessons for Global Agriculture
Overview
The closure of the Strait of Hormuz, triggered by escalating tensions and military actions in the region, has caused a severe shock to the global economy. Iran’s decision to limit shipping through this vital passage came in response to attacks by the United States and Israel. As both sides targeted and damaged critical production sites and export hubs, sharp price increases hit energy and fertilizer markets. This disruption has choked off major exports, leading to immediate shortages and soaring costs worldwide, especially for fertilizers, and has exposed the vulnerability of global supply chains to regional conflicts.