Overview
- The Strait of Hormuz blockade has stranded fertilizer cargoes that normally carry about one-third of global supply and roughly half of all urea.
- Benchmark nitrogen prices at U.S. ports have climbed nearly 30% since the fighting began, hitting growers as they lock in inputs for crops like corn and cotton.
- The U.S. food and agriculture sector generates $10.4 trillion and supports more than 48 million jobs, yet it still relies on imports for 25% of fertilizer and 18% of nitrogen.
- Export curbs and supply gaps are deepening the crunch, with China restricting fertilizer shipments to stockpile and Gulf producers unable to move product out of the blocked waterway.
- Global fallout is spreading as Australian wheat farmers cut plantings, Egypt restores price caps on unsubsidized bread, and the World Food Programme warns the conflict could push 45 million more people into acute hunger in 2026.