Hormuz Crisis Sparks Fertilizer Price Surge Amid Rising Energy Costs
Disruptions to shipping through the Strait of Hormuz have caused fertilizer prices to surge globally. According to Anadolu, around one-third of global fertilizer trade normally passes through the Strait. This has led to tightened supplies and increased costs for agricultural producers.
The market is facing pressure from higher natural gas, ammonia, and sulfur prices, with a significant share of these supplies linked to the Persian Gulf region. Diammonium phosphate recorded the sharpest increase, with prices rising 28.4% in the first nine months of 2026, from $625/t at the end of 2025 to $802.5/t.
Corn prices increased by 13.3%, while soybean prices rose by 22.6%. Higher crude oil and diesel prices are adding further pressure by increasing fieldwork and logistics costs. High fertilizer prices are already forcing some farmers to reduce application rates, which could weigh on yield potential and push producers to shift acreage toward crops with lower fertilizer requirements.
Analysts warn that if these conditions persist into the 2026/27 season, they could renew upward pressure on nitrogen and phosphate fertilizer markets. Alternative suppliers are partially offsetting the shortage, but longer shipping routes are raising baseline freight costs.