Hormuz crisis drives up fertilizer and agricultural commodity prices

Disruptions to shipping through the Strait of Hormuz and escalating tensions in the Middle East have tightened fertilizer supplies and increased costs for agricultural producers. According to Anadolu, around one-third of global fertilizer trade normally passes through the Strait of Hormuz.

Diammonium phosphate recorded the sharpest increase, with prices rising 28.4% in the first nine months of 2026, from $625/t at the end of 2025 to $802.5/t. The market is also facing pressure from higher natural gas, ammonia and sulfur prices, with a significant share of these supplies linked to the Persian Gulf region.

Against the backdrop of rising input costs, corn prices increased by 13.3%, while soybean prices rose by 22.6%. Higher crude oil and diesel prices are adding further pressure by increasing fieldwork and logistics costs.

High fertilizer prices are already forcing some farmers to reduce application rates. Analysts warn that if these conditions persist into the 2026/27 season, they could weigh on yield potential and push producers to shift acreage toward crops with lower fertilizer requirements.

Alternative suppliers are partially offsetting the shortage, but longer shipping routes are raising baseline freight costs. Further escalation in the Middle East and another rise in energy prices could renew upward pressure on nitrogen and phosphate fertilizer markets.

Tags: prices, fertilizers, Hormuz