Fertilizer Prices Rose Following Strait of Hormuz Disruptions
Global agricultural costs climbed in 2026 after regional conflict constrained critical fertilizer supply routes.
Updated on Oct. 1, 2026 in Agriculture
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Diammonium phosphate prices increased 28.4% during the first nine months of 2026, reaching $802.5 per metric ton. This surge followed the collapse of a ceasefire in the Middle East in mid-July 2026, which disrupted transit through the Strait of Hormuz.
Why it matters
The Strait of Hormuz handles one-third of global fertilizer trade, making shipping disruptions a direct threat to international food security. Rising costs for fertilizer and energy have forced farmers to reduce application rates, putting future crop yields at risk.
Diammonium phosphate prices hit $802.5 per metric ton, up 28.4% from the end of 2025. Concurrently, corn prices rose 13.3% and soybean prices climbed 22.6%.
The players
Strait of Hormuz
This critical waterway serves as a major global trade chokepoint that facilitates the movement of one-third of the world's fertilizer supply.
The details
Shipping disruptions in the Strait of Hormuz necessitated costly rerouting for alternative suppliers, while rising crude oil risk premiums pushed up diesel fuel prices. Production costs for fertilizer also spiked as natural gas and ammonia prices increased due to regional instability.
Timeline
At the end of 2025, diammonium phosphate prices were $625 per metric ton.
During the first nine months of 2026, fertilizer prices rose by 28.4%.
In mid-July 2026, a ceasefire in the Middle East collapsed.
During the 2026-2027 planting season, farmers reduced fertilizer application rates.
Market Landscape
This situation follows a pattern set by the 2022 global fertilizer supply shocks, demonstrating how regional conflicts continue to drive volatility in agricultural input costs. The current disruption highlights the ongoing vulnerability of global food chains to chokepoint blockages.
Higher fertilizer and energy costs are expected to impact planting areas next year, potentially leading to increased food prices for the average consumer. Farmers face reduced margins as they adjust application rates to cope with elevated operational expenses.
The takeaway
Rising fertilizer costs often precede broad food inflation, meaning shoppers may see higher prices at the grocery store in coming months. Farmers should consider soil testing to optimize application rates and manage expenses as the 2026-2027 season begins.
Further reading
Learn more about the Agriculture sector and its role in global commodity markets.
Source note: This article includes information reported by Anadolu Ajansı.
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