By Jamie Martin
Urea prices are climbing sharply due to heightened conflict in the Middle East, where nearly half of the world’s urea exports originate.
Escalating violence and strategic strikes have impacted key supply routes and forced major producers to halt operations.
According to Bloomberg, U.S. Gulf urea spot prices surged 16% in one week, while Middle East prices jumped 11%.
Egypt and Iran, responsible for 20% of global urea exports, have both suspended production, tightening the global supply of this crucial nitrogen fertilizer.
“Following the strikes, both Iran and Egypt halted production,” said StoneX VP Josh Linville. “We lost numbers three and four for global exporters very quickly because of these strikes.”
Linville noted Iran shut down its gas fields, halting nitrogen production, while Egypt, dependent on Israeli gas, was also forced to stop.
Additionally, 52% of the world’s urea exports pass through the Strait of Hormuz, which is now under threat of closure by Iran. This critical waterway is also essential for oil shipments, making it a point of geopolitical tension.
Though a ceasefire has provided temporary price relief, Linville said, “I do think that we will see values come off from these highs… However, we also have to understand the fact that we’ve lost production.”
Alongside this, the Renewable Fuels Association urged action to expand access to E15 fuel in response to energy instability.
RFA President Geoff Cooper wrote to the administration asking to allow E15 sales using current fuel pumps, saying, “We wholeheartedly support that vision and believe now is the time to act.”
These developments indicate continued volatility in global fertilizer and energy markets.
Photo Credit: gettyimages-eugenesergeev
Categories: National