"Choked off shipping in the Strait of Hormuz isn't just grinding oil tankers to a halt. The Iran war is creating a one-two punch for the world's fertilizer supply, blocking both the export and one of its critical ingredients from leaving the Persian Gulf."
"Fertilizer and LNG plants from Qatar to Bangladesh have already begun shutting down what happens next depends on how quickly the Strait reopens after a two-week ceasefire deal was reached."
"As fertilizer prices increase, some governments can also absorb those costs, instead of passing them on to farmers. When Russia first invaded Ukraine in 2022, triggering another major fertilizer supply shock, India raised its fertilizer subsidy by 233% above its original budget."
The conflict in the Strait of Hormuz is halting oil tankers and blocking fertilizer exports, impacting global food supply. Nearly half of the world's urea comes from this region, along with significant liquified natural gas. Fertilizer and LNG plants are shutting down, leading to potential food price increases. Governments are considering market interventions, utilizing stockpiles, and adjusting subsidies to mitigate the impact. Countries like India and China are taking steps to manage their resources amid rising fertilizer costs and supply challenges.
Read at www.dw.com
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