What Iran Means for Global Fertilizer Markets

About 180 million metric tons of fertilizers are consumed each year, and roughly 55 to 60 million metric tons of urea move through international seaborne trade annually.  The Middle East accounts for approximately 40%-50% of that traded volume, and nearly all of those exports have to travel through the Strait of Hormuz 

“In other words, close to one-quarter of the globally traded nitrogen fertilizer, and a meaningful share of total nitrogen production, moves through a single maritime choke point that is now threatened by war,” Forbes said in a recent article.

“Unlike oil, fertilizer markets lack a strategic buffer against shipping delays,” Forbes added.

Roughly half of global food production depends on synthetic nitrogen. Without it, crop yields would decline sharply.

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