World Urea Fertilizer Prices Reach US$700, Soaring 50 Percent Since Iran War

JAKARTA - Urea prices have broken through US$700 per ton for the first time since 2022 amid the still closed Hormuz Strait. This increase shows that conflicts in the region are beginning to have an impact on the global fertilizer market, after the important shipping route was disrupted due to conflicts in the region.

According to an Anadolu Agency report quoted on Wednesday, April 8, the price of urea rose 2 percent on Tuesday and was recorded at US$701.25 per ton at 16.45 GMT. Since the start of the Iran war, the price of this fertilizer has jumped by about 50 percent. If calculated since the beginning of the year, the increase is more than 70 percent.

The Strait of Hormuz plays an important role in the world's fertilizer supply chain. About 44 percent of sulfur, 31 percent of urea, 18 percent of ammonia, and 15 percent of phosphate cross the region. Disruptions in this line also put pressure on the distribution of the main components of fertilizer.

Besides being important for fertilizer, the Strait of Hormuz is also one of the most vital energy transit routes in the world. Around 20 million barrels of oil pass through the strait every day.

The Islamic Revolutionary Guard Corps announced the closure of the strait after the US and Israeli attacks on Iran began on February 28. Since then, the area has been on alert status.

To date, more than 1,340 people have been reported dead, including the then Supreme Leader of Iran, Ayatollah Ali Khamenei. Iranian authorities have not updated the number of victims in recent days.

Tehran retaliated with drone and missile attacks targeting Israel, Jordan, Iraq, as well as Gulf countries hosting US military assets. The attacks have caused casualties, damaged infrastructure, and disrupted global markets and flights.

Amid this situation, US President Donald Trump set a deadline until Tuesday at 20.00 ET or Wednesday at 00.00 GMT for Iran to reopen the Strait of Hormuz. Otherwise, the US threatened to attack Iran's vital infrastructure.