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