Crisis in the Strait of Hormuz and Geopolitical Tensions Push Global Fertilizer Prices Up
Conflicts in the Middle East and the closure of the Strait of Hormuz to shipments restricted the fertilizer supply. In the first nine months of the year, the price per ton of diammonium phosphate fertilizer increased to $802.5.
Geopolitical tensions in the Middle East and the closure of the Strait of Hormuz to shipments restricted global fertilizer supply, causing prices to soar rapidly. The price per ton of diammonium phosphate fertilizer increased by 28.4 percent in the first nine months of the year.
Strait of Hormuz Closed to Shipments
Conflicts in the Middle East and regional geopolitical tensions caused the Strait of Hormuz, one of the world's most strategic trade transit routes, to effectively close to shipments.
Fertilizer Supply Restricted
The fact that approximately one-third of fertilizer trade passes through this strait severely restricted the supply of fertilizer, the most critical production input of the global agricultural sector, and drove up costs.
Prices Rose Rapidly
The price per ton of diammonium phosphate fertilizer increased by 28.4 percent in the 9 months of the year, reaching $802.5. This product had closed 2025 at $625.
Agricultural Commodities Affected
Amidst this tension in the markets, the price of corn increased by 13.3 percent, while soybean prices recorded an increase of 22.6 percent.
Supply Chain and Expert Views
Kuveyt Türk Investment Research Director Kutay Gözgör emphasized that the procurement of sulfur and ammonia through the strait created permanent rigidity in phosphate fertilizer prices.
Future Period Expectations
It is anticipated that the negative impact of high fertilizer and energy costs on planting areas and productivity will be decisive in 2027.