Not just energy: How the Iran war could trigger a global food crisis

"Nearly half of the world's traded urea—the most widely used fertiliser—and large volumes of other fertilisers are exported from Gulf countries via the Strait of Hormuz, making global agriculture highly exposed to any disruption there. Recent disruptions to gas supplies and shipping have already forced fertiliser plants, which use natural gas to manufacture fertiliser, in the Gulf and beyond to shut or cut their output."

"Urea export prices from the Middle East have surged by about 40 percent, rising from just less than $500 to a little more than $700 per metric tonne as of last Friday, according to Argus, a specialist energy and commodities price reporting agency. The price is currently close to 60 percent higher than this time last year."

"After its LNG facilities were attacked, Qatar's state-run energy firm, QatarEnergy, halted output at what is the world's largest urea plant after it shut down gas output. Since LNG output from Qatar has dropped off, India has cut output from three of its own urea plants. Bangladesh has also shut four out of its five fertiliser factories."

The Iran conflict has disrupted shipping through the Strait of Hormuz, which transports 20 percent of the world's oil and gas. This disruption has caused fertilizer plants in the Gulf and beyond to shut down or reduce output due to natural gas supply interruptions. Nearly half of the world's traded urea, the most widely used fertilizer, is exported from Gulf countries through this strait. Urea prices have surged approximately 40 percent, rising from under $500 to over $700 per metric tonne. Multiple countries including India, Bangladesh, and the US face significant fertilizer shortages, threatening global food production and security.

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