war in Iran has sharply increased fertilizer prices because it has disrupted shipping through strategic Strait of Hormuz. Iran's near shutdown of Strait is in retaliation for attacks by U.S. and Israel. The Persian Gulf region is critical supplier of fertilizer ingredients. Qatar, Saudi Arabia, Iran, and Oman are among world's top exporters. The ongoing hostilities have resulted in around 30 to 40 per cent of world's fertilizer trade being significantly disrupted. Farmers worldwide are having to pay up to 35 per cent more for fertilizer. Experts predict farmers will be planting fewer crops like corn, rice, and wheat, which will lead to lower yields and higher food prices.
United Nations has stated that the crisis will cause global food shortage. Carl Skau of the World Food Programme spoke about impact the conflict might have. He outlined two scenarios, saying: "In worst case, this means lower yields and crop failures next season. In best case, higher input costs will be included in food prices next year." Maximo Torero, Chief Economist of UN's Food and Agriculture Organization, said: "It is systemic shock affecting agrifood systems globally." He added: "Farmers are facing dual cost shock. They have more expensive fertilizers alongside rising fuel costs, affecting entire agricultural value chain, including irrigation and transport."
