The Strait of Hormuz crisis is putting pressure on far more than oil. Roughly a third of internationally traded fertilizer moves through the Strait of Hormuz, along with about 20% of the natural gas used to produce it. That is why disruption there is already putting pressure on global agriculture. Fertilizer costs have climbed sharply, with some U.S. fertilizers rising more than 40% in just one month after the war began in late February. In mid-March, U.S. fertilizer supply was running at about 75% of normal right as Corn Belt farmers were beginning spring applications. That matters because timing is critical. Cutting nitrogen by 10% to 15%, or delaying it by just a few weeks, can reduce corn yields by 10% to 25%. Farmers may respond by planting less corn or switching to crops like soybeans that need less fertilizer, which would tighten supply even further.
Why This Matters:
This is how a food emergency builds. Fertilizer hits crops, crops hit feed, feed hits livestock, and the pressure keeps moving until families feel it at the grocery store. The Strait of Hormuz is still one of the biggest pressure points in the global food system, and as long as that shipping route remains uncertain, fertilizer supply, fuel costs, and food production all stay vulnerable. This is not just about one harvest season. Lower corn and wheat production can raise feed costs, push up meat prices, and keep food inflation going long after the conflict stops. The longer this continues, the more unstable the food supply becomes and the more families here at home will feel it through higher prices.
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Source: Fortune
By: Aya S. Chacar and The Conversation
