War Drives Fertiliser Prices Soaring and Threatens Global Food Production

The Middle East conflict involving Iran versus the United States and Israel has caused disruptions to global supply chains as a result of the closure of the Strait of Hormuz. The effect has seen prices of oil and global food commodities that rely on the Strait of Hormuz as a distribution route surge significantly.

Agrifood Analyst at CNBC Indonesia Research, Emanuella Bungasmara Ega Tirta, noted that the effects of the Iran conflict and the closure of the Strait of Hormuz have disrupted the movement of cargo ships transporting oil and food commodities such as soya beans, maize, rice, vegetable oil, and fertiliser.

The disruption to supplies of food commodities and fertiliser will inevitably hinder global food production. To date, urea fertiliser prices have risen 27 per cent, ammonia by 16 per cent, and phosphate by 16 per cent.

The analyst highlighted the urgent need for government strategies to address these supply chain challenges and protect domestic food security in the face of ongoing geopolitical tensions affecting critical trade routes.