Global fertilizer supply is in urgent shortage, causing fertilizer prices to skyrocket.

According to United Nations data, about one third of global maritime fertilizer trade needs to pass through the Strait of Hormuz for transportation. However, the shipping in the region has collapsed, with transit volumes dropping by over 95%, leading to interruptions in energy and fertilizer transportation. This has resulted in a significant increase in fertilizer prices. Taking urea, the most widely used nitrogen fertilizer, as an example, the off-shore price of granular urea in the Middle East has increased from less than $500 per ton before the conflict outbreak to around $850 per ton now, with an increase of over 75%.