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Home»Economic News»Global Fertilizer Market Thrown In Chaos After Mideast War Shutters Iran Urea Production
Economic News

Global Fertilizer Market Thrown In Chaos After Mideast War Shutters Iran Urea Production

June 22, 2025No Comments2 Mins Read
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Oliver Ward of Agri-Pulse reveals that the Middle East conflict has disrupted urea production in Iran, causing a ripple effect in the global fertilizer markets. This adds to the existing uncertainty surrounding Russian and Chinese fertilizer supplies, as noted by analysts.

According to Agri-Pulse, tensions escalated between Iran and Israel, leading to a preemptive missile strike by Israel targeting Iran’s nuclear program and military leadership. The aftermath of these attacks has resulted in the closure of key infrastructure and industries, including the fertilizer sector.

Mark Milam, from Independent Commodity Intelligence Services, mentioned that Iran has closed seven of its urea and ammonia plants due to concerns of being potential Israeli targets. Additionally, Josh Linville of StoneX highlighted that attacks on Iran’s natural gas infrastructure have further disrupted operations.

StoneX reported that Iran was the third-largest urea exporter in 2024, with a production capacity of 8.9 million tons annually. The country served markets in Turkey, Brazil, Argentina, and exported ammonia as well.

The conflict not only impacted Iranian production but also halted operations in Egypt when Israel reduced natural gas flows to the country. This situation has raised concerns about global fertilizer supply stability.

AgWeb’s Margy Eckelkamp reported that the conflict’s implications extend beyond Iran and Israel. Arlan Suderman of StoneX highlighted the risks associated with other Middle Eastern fertilizer producers and the transport of goods through the Strait of Hormuz.

Linville emphasized the need for vigilance in monitoring potential outcomes of the conflicts and strikes in key fertilizer production regions to mitigate supply disruptions.

Furthermore, Ward’s report mentioned China’s reduced fertilizer exports, adding another layer of complexity to the global fertilizer market. Linville expressed concerns about urea supply uncertainties and their impact on farmers.

Despite short-term price shocks, U.S. farmers may face complications if supply uncertainties persist. The retreat of China from the fertilizer export market poses a significant concern for price stability in the coming years.

As the situation evolves, monitoring global fertilizer supply chains and market dynamics will be crucial for all stakeholders involved.

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Chaos Fertilizer global Iran Market Mideast production Shutters Thrown Urea war
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