Iran war threatens fertilizer supplies critical to food production
March 9, 2026 07:40 pm
The war in Iran could have grave consequences for food production around the world because the Middle East is home to some of the world’s largest fertilizer plants, as well as a major producer of the raw materials necessary to make fertilizer.
According to Morningstar, around 25-35% of global trade in those raw materials passes through the Strait of Hormuz, the narrow waterway flanked by Iran on one side and which is effectively closed to ships. Iran is also the fourth-largest global exporter of urea, a widely used fertilizer, after Russia, Egypt and Saudi Arabia, with Saudi exports also affected by the strait’s closure.
Egyptian urea prices, an industry benchmark, have shot up by more than a third since the start of the Iran conflict, according to CRU Group, a data provider. Prices for sulphur, used in fertilizer, have also jumped. Nearly half of global sulphur exports come from countries in the Middle East, CRU Group said.
Attacks on energy infrastructure in the region, which have already prompted Qatar’s major producer to cut natural gas output critical to making fertilizer and its inputs, could further knock supply.
“The Strait of Hormuz is essential for global food production,” CEO of Norwegian chemical company Yara International, Svein Tore Holsether, told CNN last week.
“Fertilizers are not just another commodity – nearly half of global food production depends on them.”
Source: CNN
- Agencies
