Fertilizer Crisis
The 2026 Hormuz closure severely disrupted global fertilizer supply. The Persian Gulf produces roughly 30–35% of global urea exports and 20–30% of ammonia exports; about one-third of internationally traded fertilizer normally transits the Strait of Hormuz. By late March 2026, urea prices had risen 50%. QatarEnergy’s LNG shutdown compounded the problem since natural gas is the primary input for nitrogen fertilizers. The disruption during spring planting season threatened to reduce US corn yields (a key feedstock for beef, poultry, dairy) and could raise global food prices into 2027. Unlike oil, fertilizers have no internationally coordinated emergency reserves.
Connections
- Oil Price Impact — sibling commodity shock
- Strait of Hormuz — transit chokepoint
- Global Economy — broader economic context
- QatarEnergy — LNG production halt compounded crisis