economy
March 11, 2026
Food prices could rise as Iran conflict disrupts fertilizer supply chain
The Iran conflict is disrupting fertilizer shipments through the Strait of Hormuz, raising supply concerns and potentially increasing global food inflation.
TL;DR
- The war in Iran is disrupting fertilizer shipments through the Strait of Hormuz, a key global trade route.
- This disruption threatens to increase global food prices through higher agricultural costs and potential food inflation.
- More than one-third of globally traded fertilizer passes through the Strait of Hormuz.
- The timing of the disruption is critical as farmers prepare for spring planting.
- A shortage of fertilizer could lead to reduced crop yields for major crops like corn, soybeans, and wheat.
- Prices for urea fertilizer imports in the U.S. jumped by 30% in the week following the start of the war.
- Asia and Africa are particularly dependent on fertilizer exports from the Gulf region.
- Fertilizer producers, such as CF Industries, could benefit from the increased prices and demand.
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