From gas to grain: Fertilizer disruptions raise risks for food security and trade
The ongoing conflict affecting the Strait of Hormuz region is disrupting energy and fertilizer flows, with measurable impacts on costs and growing risks for food systems, trade and vulnerable economies.
The disruption is linking energy markets to food systems, with growing implications for trade and development:
- Shipping through Hormuz has collapsed, with transits down by over 95%, disrupting energy and fertilizer flows
- Energy prices have surged, with oil and gas rising sharply across regions
- The region is central to global fertilizer supply, both as a producer and a key trade route
- Rising energy, fertilizer and transport costs are increasing risks to food production, supply and prices
The escalation of the conflict affecting the Strait of Hormuz region, including Iran and the Gulf States, is increasingly reflected in fertilizer markets, linking disruptions in energy and shipping to agricultural markets, future food supply and trade.
Energy disruptions feed into fertilizer markets
The Strait of Hormuz is a critical artery for global energy and fertilizer trade, carrying around a quarter of seaborne oil as well as significant volumes of liquefied natural gas and fertilizers.
Since the escalation of the conflict, shipping activity through the Strait has fallen dramatically. Daily transits dropped from an average of 103 vessels in the last week of February to single digits within weeks, effectively bringing flows close to a standstill.
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