LONDON, March 30. /TASS/. Global trade in fertilizers and ammonia is under significant pressure due to the US and Israeli military operation against Iran, which has led to the de-facto closure of the Strait of Hormuz, a report by the consulting company Rystad Energy says.
According to the report, about 15% of global ammonia sales and 21% of urea, the most concentrated nitrogen fertilizer, are tied to exporters potentially impacted by the closure.
The main exporters of these commodities in the region are Saudi Arabia, Qatar, Kuwait, Bahrain, the UAE, Iran, and Iraq. According to Rystad Energy, logistical problems could have a serious impact on the ammonia and urea market, which would quickly have a negative impact on food prices and could disrupt supply chains.
"More than one-fifth of urea traded by these Middle East exporters has direct implications for crop growth and farming, with India standing as the most exposed, importing around 6% to 8% of fertilizer from these Gulf countries," said Minh Khoi Le, senior vice president, and global head of hydrogen.
"The strait’s closure can translate into real downstream risk quickly, including possible food shortages, manufacturing disruptions, compromised water integrity, and other significant global challenges," he added.
On February 28, the United States and Israel began a war against Iran. Major Iranian cities, including Tehran, came under strikes. The Islamic Revolutionary Guard Corps (IRGC) announced a large-scale retaliatory operation, targeting Israel. US military facilities in Bahrain, Jordan, Iraq, Qatar, Kuwait, the United Arab Emirates and Saudi Arabia were struck as well.
Iranian authorities also decided to close the Strait of Hormuz to vessels linked to the United States, Israel and countries supporting aggression against the Islamic Republic. During the conflict, several tankers were attacked for passing through the strait without Tehran’s permission. On March 25, Iranian Foreign Minister Abbas Araghchi reported that Iran had allowed passage through the Strait of Hormuz for friendly countries, including Russia, India, Iraq, China and Pakistan.