U.S.-Iran tensions have sent fertilizer prices soaring. Iran has blocked maritime traffic through the Strait of Hormuz, disrupting critical shipments. Large volumes of urea, ammonia, phosphates, and sulfur move through this corridor, creating a major choke point for agricultural supply chains. With U.S. reliance on imported potash exceeding 90%, farmers now grapple with a 37% rise in fertilizer costs since 2020. Anhydrous ammonia prices have increased by 15%, while urea fertilizers are up 5%. American farmers, already facing higher production costs, are now bracing for even steeper expenses.
The Strait of Hormuz, a narrow 30-mile waterway between Oman and Iran, carries 20% of global oil shipments. Its closure impacts not just oil but also crucial fertilizer imports, forcing farmers to absorb higher costs.