Farmers around the world are facing sharply higher fertilizer costs as conflict involving Iran disrupts a key global shipping route just weeks before spring planting in the Northern Hemisphere.

The escalation in the Middle East has interfered with shipments moving through the Strait of Hormuz, one of the most important corridors for global energy and fertilizer trade. The narrow passage connects the Persian Gulf with the Gulf of Oman and normally handles large volumes of agricultural inputs moving from the Middle East to international markets.

Shipping traffic through the strait dropped sharply in early March after missile and drone attacks targeted vessels in the region. Many shipping companies suspended operations because of security risks and rising insurance costs, significantly reducing tanker movement through the waterway.

The route is critical for agriculture because a large share of the world’s fertilizer ingredients travels through the Gulf region. Industry analysts estimate that roughly one-third of global urea trade passes through the Strait of Hormuz, making any disruption a major concern for fertilizer buyers and crop producers.

The conflict has also affected energy production in several Gulf countries that supply raw materials used in fertilizer manufacturing. Natural gas is a key feedstock for nitrogen fertilizers such as ammonia and urea, linking energy market disruptions directly to fertilizer costs.

Fertilizer prices have already climbed in response to tightening supplies, with international urea values rising as importers attempt to secure product before planting season.

Farmers in North America, Europe and Asia depend heavily on fertilizer shipments originating in or moving through the Gulf region. The disruption is creating uncertainty at a time when producers typically finalize input purchases and prepare for seeding.

Producers on the Canadian Prairies could also feel the effects. While Canada has domestic fertilizer production, Prairie farmers still rely on global markets for nitrogen and other inputs and international price increases often move quickly into wholesale and retail fertilizer costs ahead of the spring seeding season.

Higher fertilizer costs are expected to place additional pressure on farm margins in 2026. Many growers were already dealing with lower grain prices and large global inventories, leaving little room to absorb rising input expenses.

Analysts warn the effects could extend beyond the farm sector if the disruption continues. Fertilizer is one of the largest production costs in crop farming and sustained price increases could eventually influence food prices if farmers reduce fertilizer use or cut planted acreage.

Even if hostilities ease, restoring normal shipping and production levels in the Persian Gulf could take time, leaving fertilizer markets volatile during the upcoming growing season.