finance
World Fertilizer Prices Rise 44 Percent Since Start of Iran War
Global fertilizer prices have increased 44 percent since the beginning of the Iran War and now stand at their highest level since 2022. The rise coincides with the effective closure of the Strait of Hormuz, through which roughly one-third of globally traded fertilizers normally pass.
May 20, 2:54 PM·1m read1 source
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World fertilizer prices have risen 44 percent since the start of the Iran War, reaching their highest level since 2022. The increase follows the effective closure of the Strait of Hormuz. Approximately 33 percent of globally traded fertilizers normally transit the strait, including 23 percent of global ammonia, 34 percent of urea, and nearly 20 percent of global phosphate supply.
The Bloomberg Agriculture Subindex has increased about 9 percent since the Iran War began. The index tracks futures prices for wheat, corn, soybeans, sugar, coffee, and cotton. Past periods of rising fertilizer prices have preceded higher agricultural output prices.
Higher production costs can lead farmers to reduce supply, which in turn can push crop prices higher. A new wave of global food inflation is imminent.
