Trending Now - Escalating Iran Conflict Disrupts Supply Chains and Fuels Gas Prices

WHO:

Daniel Cabral, procurement director at Kibsons International, stated, "At the moment, the supply chain is extremely challenging."

Louis Botha, head of supply chains at Spinneys, said, "There is no way we’re going to go hungry."

Richard Meade, editor-in-chief of Lloyd’s List Intelligence, commented on the need for security in the Strait of Hormuz.

Noah Gordon, fellow at the Carnegie Endowment for International Peace, stated, "Fertilizer prices are way up. They're up around 30 percent more in some parts of the world."

Máximo Torero, chief economist for the United Nations Food and Agriculture Organization, said, "The loss of Gulf exports creates an immediate global shortfall with no quick substitutes."

Avinash Kishore, researcher with the International Food Policy Research Institute in New Delhi, expressed concern about the high prices of fertilizer in India, stating, "There is a little bit of nervousness about what if the war continues for too long."

President Trump is mentioned in relation to federal subsidies for farmers.

Noah Gordon, fellow at the Carnegie Endowment for International Peace.

Máximo Torero, chief economist for the United Nations Food and Agriculture Organization.

Avinash Kishore, researcher with the International Food Policy Research Institute in New Delhi.

Rodney Bushmeyer, farmer at Bushmeyer Farms in Illinois.

Matt Bennett, CEO of AgMarket.

Chris Yearsley, CEO and head of nitrogen at Profercy.

Philip Coffin, independent grain industry analyst.

Gregg Ibendahl, associate professor at Kansas State University.

Lance Lillibridge, farmer in east-central Iowa.

Angela Guentzel, sixth-generation farmer and board member of the Minnesota Corn Growers Association.

Brittany Martinez, Republican strategist and executive director of Principles First.

WHAT:

Kibsons International imports 50,000 tons of food per year and is currently rerouting shipments due to the conflict.

Shipping companies have imposed $4,000 surcharges per container destined for the entire Middle East.

Kibsons reported that quotes for freight from Europe increased from 3,000 euros to 14,500 euros.

The USDA's planting intentions survey results are scheduled for release on March 31st, 2026.

The UN estimates that roughly one-third of global fertilizer shipped goes through the Strait of Hormuz.

Countries like Pakistan, India, and Brazil rely on supplies from Gulf countries for fertilizer production.

Some fertilizer production plants in India, Bangladesh, and Pakistan have had to stop entirely due to the conflict.

The World Food Programme warns that supply chains may be on the brink of the most severe disruption since the COVID-19 pandemic and the start of the full-scale Ukraine war in 2022.

Kibsons International, a UAE-based fresh food and vegetable retailer, imports 50,000 tons of food per year and is currently rerouting shipments due to the conflict.

Shipping companies have imposed $4,000 surcharges per container destined for the entire Middle East.

Daniel Cabral, procurement director at Kibsons, mentioned that shipping costs have risen sharply, with quotes for freight from Europe increasing from 3,000 euros to 14,500 euros.

Fertilizer prices have increased by around 30% in some parts of the world due to the ongoing conflict.

The UN estimates that roughly one-third of global seaborne fertilizer passes through the Strait of Hormuz, which is currently experiencing a significant reduction in shipping traffic.

The price of nitrogen fertilizer has surged from $470 per short ton in late February 2026 to $600 by March 10th, 2026.

The market is losing approximately 5.2 million cubic meters of helium per month due to supply disruptions.

Helium prices have doubled from the supply shock and could surge another 25% to 50% if disruptions are prolonged.

Fertilizer prices have increased by around 30% in some parts of the world due to the conflict.

Benchmark New Orleans nitrogen prices rose from $470 per short ton in late February 2026 to $600 by March 10th, 2026.

The UN estimates that roughly one-third of global seaborne fertilizer passes through the Strait of Hormuz.

The market is losing approximately 5.2 million cubic meters of helium per month due to supply disruptions.

Helium prices have doubled from the supply shock and could surge another 25% to 50% if disruptions are prolonged.

Fertilizer prices have increased by nearly double since the shipping channel closed, with benchmark New Orleans nitrogen prices rising from $350 per short ton in late December 2025 to $600 by March 10th, 2026.

The Middle East accounts for 35% of global urea trade and approximately 20% of phosphate trade comes from Saudi Arabia.

Farmers have struggled with higher costs than the prices they are paid for harvest for at least three years.

The USDA's preliminary grain-acreage estimate has forecast a 4 million-acre swing to soybeans from corn for 2026.

Fertilizer prices have increased by around 30% in some parts of the world.

The price of nitrogen fertilizer rose from $350 per short ton in late December 2025 to $600 by March 10th, 2026.

The U.S. imports about 25% of its total fertilizer use, including 18% of its nitrogen use.

The USDA forecasts 2026 will be another year of lowered profits for farmers.

In 2025, federal subsidies included $12 billion in bridge loans for farmers affected by Trump's tariffs.

A 4 million-acre swing to soybeans from corn is forecasted by the USDA for 2026.

WHERE:

Kibsons has containers currently waiting outside the Strait of Hormuz with no confirmed arrival dates.

The Strait of Hormuz is a critical chokepoint for global energy and other commodities, affecting food supply into the Gulf region.

Kibsons has containers currently waiting outside the Strait of Hormuz with no confirmed arrival dates.

The Strait of Hormuz is a critical shipping route for fertilizer and is currently experiencing a near-total closure.

The Strait of Hormuz is a key shipping route for fertilizer.

Bushmeyer Farms is located in Illinois.

The affected regions include South Asia (Bangladesh, India, Pakistan, Sri Lanka), East Africa (Sudan, Kenya, Somalia), and the Middle East (Turkey, Jordan).

WHEN:

The conflict affecting fertilizer supply began on February 28th, 2026.

The conflict affecting fertilizer supply began on February 28th, 2026, when the U.S.-Israeli war against Iran escalated.

The conflict affecting fertilizer supply began in 2026.

The USDA's planting intentions survey results are scheduled for release on March 31st, 2026.

The nitrogen price increase occurred from late December 2025 to March 10th, 2026.

WHY:

The closure of the Strait of Hormuz has led to significant disruptions in fertilizer production and transportation, impacting global food supply chains.

The U.S.-Israeli war against Iran has led to the closure of the Strait of Hormuz, disrupting fertilizer supply and causing significant price increases.

The closure of the Strait of Hormuz has led to a significant reduction in fertilizer production in countries like India, Bangladesh, and Pakistan, where some plants have stopped production entirely.

The closure of the Strait of Hormuz has intensified pressure on farmers during the U.S. spring planting season, coinciding with several years of losing money on crops.

The U.S.-Israeli war against Iran has led to the closure of the Strait of Hormuz, disrupting fertilizer supply.

The increase in fertilizer prices is attributed to the ongoing conflict and previous disruptions from the Russia-Ukraine war.

HOW:

The conflict has caused commercial transit disruptions that have hurt global pharmaceutical trade, particularly affecting medicines with short shelf lives.

Farmers are making decisions about what to plant and how much fertilizer to use throughout the growing season, with fewer nutrients potentially reducing yields and earnings.

Fertilizer deliveries from the Middle East can take up to two months to reach farmers in the northern U.S.

Farmers are adjusting their planting decisions based on fertilizer availability and costs, with some considering switching from corn to soybeans due to lower fertilizer requirements.

The fertilizer industry is described as highly concentrated, allowing for market manipulation.

(UPDATED March 22, 2026 05:24 UTC)

The ongoing conflict that began on February 28 has severely disrupted the supply chain, with Daniel Cabral from Kibsons International noting that they are rerouting shipments and facing significant challenges. Meanwhile, shipping companies have imposed hefty surcharges, with Kibsons reporting a staggering increase in freight costs from Europe, while containers are currently stuck outside the Strait of Hormuz without confirmed arrival dates. Richard Meade, editor-in-chief of Lloyd’s List Intelligence, emphasized the critical need for security in the region, as these disruptions are impacting not only food supply but also the pharmaceutical trade.

(UPDATED March 22, 2026 01:34 UTC)

The ongoing conflict that escalated on February 28, 2026, has severely disrupted fertilizer production and transportation, leading to a significant global food supply crisis. Experts like Noah Gordon from the Carnegie Endowment for International Peace and Máximo Torero from the UN Food and Agriculture Organization have highlighted that fertilizer prices have surged by around 30 percent in some regions, while countries such as Pakistan, India, and Brazil are facing immediate shortages due to the loss of Gulf exports. Shipping costs have skyrocketed, with companies imposing hefty surcharges and containers waiting outside the critical Strait of Hormuz, leaving many in the food and pharmaceutical industries concerned about the potential for the most severe supply chain disruptions since the COVID-19 pandemic.

(UPDATED March 21, 2026 23:01 UTC)

Fertilizer prices have surged by around 30% in some regions due to the ongoing U.S.-Israeli conflict with Iran, which has led to a near-total closure of the critical shipping route, the Strait of Hormuz. The price of nitrogen fertilizer jumped from $470 per short ton in late February to $600 by March 10, and the market is also facing significant helium supply disruptions, with prices doubling and potentially rising another 25% to 50% if the situation continues. These disruptions are impacting global pharmaceutical trade, particularly for medicines that have short shelf lives.

(UPDATED March 21, 2026 19:07 UTC)

Fertilizer prices have surged by around 30% in some regions of the world, with benchmark nitrogen prices in New Orleans jumping from $470 per short ton in late February to $600 by March 10. The closure of the Strait of Hormuz has severely impacted fertilizer production in countries like India, Bangladesh, and Pakistan, leading to some plants halting operations entirely. Additionally, the ongoing conflict has disrupted commercial transit, negatively affecting global pharmaceutical trade, especially for medicines that have short shelf lives.

(UPDATED March 21, 2026 11:01 UTC)

Fertilizer prices have nearly doubled since the closure of the shipping channel, with benchmark nitrogen prices in New Orleans soaring from $350 per short ton in late December to $600 by March 10. This spike comes as farmers face mounting pressure during the U.S. spring planting season, having struggled with higher costs than what they earn from their harvests for the past three years. As a result, the USDA's preliminary grain-acreage estimate indicates a significant shift, forecasting a four million-acre move from corn to soybeans for 2026, as farmers navigate the challenges of delayed fertilizer deliveries from the Middle East.

(UPDATED March 21, 2026 09:03 UTC)

Today, President Trump is being discussed in connection with federal subsidies for farmers as fertilizer prices have surged by around 30% in some regions, with nitrogen fertilizer costs jumping from $350 per short ton in late December to $600 by March 10. The ongoing U.S.-Israeli conflict against Iran has led to the closure of the crucial Strait of Hormuz, disrupting fertilizer supplies and prompting farmers to rethink their planting strategies, with a significant shift from corn to soybeans expected this year. As the USDA prepares to release its planting intentions survey results on March 31, farmers are bracing for another year of reduced profits, following $12 billion in federal subsidies provided in 2025 to help mitigate the impact of Trump's tariffs.