The Strait of Hormuz Isn’t Just an Oil Problem, It’s Now a Food Problem

The blockade of the Strait of Hormuz is no longer solely an energy concern, as it is now significantly disrupting the global fertilizer trade. Approximately one-third of the world’s seaborne fertilizer passes through this crucial waterway, with countries in the Persian Gulf exporting nearly half of the global urea and 30% of ammonia – essential nutrients for crop growth. Since February 28th, shipping through the strait has decreased by over 95%, causing granular urea prices in Egypt to jump to $700 per metric ton. Experts predict global fertilizer prices will rise 15-20% in the first half of 2026, potentially increasing global food prices by 12%. The timing is critical, as fertilizer shortages threaten planting seasons in countries like India, with potential consequences lasting beyond any resolution of the current conflict. This situation mirrors the 2022 Sri Lankan collapse, but with a faster velocity and impacting multiple countries, highlighting a potential synchronized global food shock.

(Source：BeInCrypto)