Economy

Hormuz blockade sparks global fertilizer shortages, higher food prices

The closure of the Strait of Hormuz by the Iranian regimes has sparked a global fertilizer crisis that threatens mass crop failures and soaring food prices worldwide.

A container ship Marsa Victory sails in the waters of the Strait of Hormuz off the coast of Khasab in Oman’s northern Musandam peninsula on June 25, 2025. [Giuseppe Cacace/AFP]
A container ship Marsa Victory sails in the waters of the Strait of Hormuz off the coast of Khasab in Oman’s northern Musandam peninsula on June 25, 2025. [Giuseppe Cacace/AFP]

By Noureddine Omar |

The closure of the strategic Strait of Hormuz by the Iranian regime is threatening global food prices and farmers worldwide.

Global trade has been severely disrupted by the halt of fertilizer shipments through the Strait, since the operation against the regime began on February 28.

Gulf countries like Saudi Arabia, Qatar, the United Arab Emirates, Kuwait and Iran are critical hubs in the global fertilizer supply chain.

About one-third of the global fertilizer trade, especially nitrogen-based product, passes through the Strait of Hormuz, according to the United Nations.

Estimates show that around 30% of exportable fertilizer supplies, including those from Saudi Arabia, Qatar, Bahrain and also Iran, are currently unavailable on the market.

Nitrogen fertilizer prices increase

"Agricultural crops worldwide rely heavily on several types of chemical fertilizers, especially phosphates, potash and nitrogen," agricultural engineer Fakhri Attallah, a research consultant at the Egyptian Ministry of Agriculture and Land Reclamation, told Al-Fassel.

The critical issue is that farmers can withstand the lack of phosphates and potash for at most two seasons, but the absence of nitrogen-based fertilizers, he stressed, "means eliminating all types of crops".

Nitrogen fertilizer prices, linked to natural gas, are up 50% in futures contracts, reflecting similar rises in other fertilizer types.

Analysts note that the price of granular urea (FOB) in Egypt, a worldwide benchmark for nitrogen fertilizer, has risen sharply.

Shipping disruptions in the Strait of Hormuz and a global price surge are driving the price spike.

Prices have reached $700 per metric ton, up from a range of $400 to $490 before the war.

"Disruptions to fertilizer supplies threaten global food security by reducing agricultural output and increasing food prices, exacerbated by rising oil-linked transportation costs," Attallah said.

Warnings of looming food insecurity

Analysts warn that severe supply constraints caused by the Strait of Hormuz blockade will trigger soaring global food prices and imminent food insecurity.

"Food supplies are interconnected across many countries, particularly those that export fertilizers and, in turn, import essential commodities like wheat and corn," said Mai Abdul Rahman, an international affairs expert.

"Therefore, the potential impact on food security presents a genuine threat to the national security of numerous countries," she added.

Internal unrest could broaden security instability, directly serving the Iranian regime’s interests across the Gulf, the Middle East, and North and East Africa.

Global security hinges on agricultural production; its collapse would allow the Iranian regime and its proxies to pose a real threat to the region, Abdul Rahman said.

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