economy
March 12, 2026
Strait of Hormuz closure sends fertilizer prices soaring. These stocks stand to benefit
A few fertilizer stocks still stand to gain ground amid shipping disruptions, according to Jefferies.
TL;DR
- The Strait of Hormuz bottleneck is causing immediate volatility and price increases in liquid fertilizer.
- Global fertilizer markets have tightened due to the Strait of Hormuz closure and Middle East production halts.
- North American producers like LSB Industries and Nutrien are benefiting from higher domestic spot prices.
- Jefferies upgraded Nutrien to a buy and raised its price target, and also lifted its price target on LSB Industries.
- The Strait of Hormuz handles a significant portion of global ammonia and urea flows.
- Logistical and production challenges are contributing to temporarily inflationary fertilizer prices.
- These headwinds coincide with the crucial spring planting season and peak demand in the Northern Hemisphere.
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