economy

March 14, 2026

Global food supplies could be badly hit if Iran war drags on, says fertiliser boss

Yara’s Svein Tore Holsether says it would be ‘catastrophic’ if the strait of Hormuz was closed for a year

Global food supplies could be badly hit if Iran war drags on, says fertiliser boss

TL;DR

  • An extended conflict in Iran could badly damage global food supplies.
  • Global food prices are expected to rise, impacting the poorest countries the most.
  • A third of the world's urea and about a quarter of globally traded ammonia come from the Gulf.
  • Prices of urea have increased significantly since the war began.
  • Closure of the Strait of Hormuz for a year would be catastrophic for food production.
  • Crop yields could see reductions of up to 50% for some crops if fertilizer is unavailable.
  • The fertilizer industry faces a double impact: choked-off raw material supplies and skyrocketing gas prices.
  • Production in Qatar and Iran has reduced, and some Asian governments have ordered gas rationing.
  • Europe's stronger buying power could outbid poorer countries for fertilizer.
  • The UN World Food Programme warns of worsening hunger for vulnerable populations due to rising food and fuel prices.

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