The traffic jam through the Strait of Hormuz has caused a sharp increase in the price of nitrogen fertilizers, which may negatively affect food production in the world. Market experts warn that the shortage of resources for farmers may significantly limit the volume of crops and yields in the coming months.

According to analysts at UkrAgroConsult, the price of urea has increased by a third and reached $584.50 per ton. This is 52% higher than last year's level and $114 higher than the base price that was fixed before the start of the full-scale war. In just 11 days, quotes have risen by 29% - from $452-470 to the current level, and the annual price increase has exceeded 50%, which significantly exceeds the pre-war base indicators.

In the US market, prices for urea delivered by barge to the port of New Orleans have risen to $520-550 per tonne from $470-500 earlier. At the same time, prices for phosphate fertilizers, in particular diammonium phosphate (DAP), have risen from $625 to $645-660 per tonne in just one week, indicating a rapid escalation of tensions in the global fertilizer market.

The main factor in the price increase is disruptions to supplies from the Middle East, a region that is one of the key producers of nitrogen fertilizers. Several major international insurance companies have suspended marine insurance in the area, which has complicated the transportation of not only oil but also fertilizers. Iran, which provides about 10-12% of global urea exports, has been at risk due to the blockade of deliveries.

In addition, one of the world's largest nitrogen complexes in Ras Laffan declared force majeure after halting production in early March. This further increases the threat of fertilizer shortages on the world market and poses risks to global food security.

Analysts note that the rapid increase in fertilizer prices directly affects the cost of agricultural products, as production costs increase. Farmers are already forced to revise their planting plans and look for alternative sources of nutrition for plants to minimize economic losses and ensure crop stability.

If the situation with transportation through the Strait of Hormuz does not stabilize in the near future, the global fertilizer market may remain in a state of increased volatility, and food security in many countries may be seriously threatened.