Nearly one-third of globally traded fertilizer passes through the Strait of Hormuz. Its closure therefore, cut fertilizer flows to the extent of 87 per cent of the pre-conflict average. This caused prices to skyrocket, with key inputs like urea being currently priced at $850/tonne compared to about $450/tonne in February. This is exacerbated by dwindling LNG imports forcing domestic fertilizer production to shut down. Historically, agricultural commodity prices have shown inflationary trends during crises, with rising fertilizer prices often pushing up food prices. The brunt of this will be felt more by the Gulf fertilizer-dependent countries

Published on May 26, 2026