Urea Fertilizer Prices Jump amid Hormuz Crisis; Iran and Qatar Halt Ammonia Output

Disruption in the Strait of Hormuz, the route for about a quarter of global urea exports, has put the fertilizer market under pressure. According to World Bank data, the global fertilizer index has risen about 12% during the Hormuz crisis, and the bank projects urea prices will climb close to 60% in 2026. Urea topped $850 a tonne in April, up about 80% from February and the highest since April 2022.

The surge stems from a halt to ammonia production in Iran and Qatar's suspension of urea, ammonia and sulfur output during the war, alongside higher natural-gas prices (the main feedstock for nitrogen fertilizers) and rising freight and insurance costs. Iran is itself a significant exporter of urea and petrochemicals, making this market important for its domestic industry.