Home›Commodities›Agriculture›Strait of Hormuz closure lifts fertilizer and crop pri…

Strait of Hormuz closure lifts fertilizer and crop price pressure

Crop prices reached a three-year high as fertilizer supply disruptions tie to oil shocks, with about one-third of global urea imports sourced from the Middle East.

Reported · Written up by our desk · Agriculture

OilPrice reports crop prices have hit a three-year high, a move it links to downstream pressure that could later reach supermarket prices.

According to OilPrice, two key drivers are intensifying conflict in the Black Sea that threatens global grain trade, and volatility in fertilizer markets tied to the war in Iran and the earlier closure of the Strait of Hormuz.

The outlet says synthetic fertilizer is a petroleum product, making fertilizer and components such as urea and phosphate highly sensitive to oil shocks and supply disruptions.

OilPrice adds that about one-third of the world's urea imports come from the Middle East, and since the Strait closed to shipping earlier this year, 3.9 million tonnes of urea exports, about 30 percent of the region's annual fertilizer exports, have been effectively blockaded, raising risks that sustained volatility could follow.

More like this

Sources