Iran War and U.S. Agriculture

The war in Iran and Tehran’s restrictions at the Strait of Hormuz have choked off roughly 30–40% of global nitrogen fertilizer trade—constraining urea (up about 50%) and ammonia (up about 20%) supplies as well as phosphate and sulfur flows—and, despite Iran telling the UN it will facilitate humanitarian and agricultural shipments, producers are demanding security guarantees before normal cargos resume. Those disruptions, together with sharply higher diesel and energy costs, have driven U.S. farmers’ input expenses sharply higher (some report cost increases around 25%), left some unable to obtain key fertilizers, raised farm bankruptcy risks, threatened lower crop yields and higher food prices, and prompted U.S. policy moves and diplomatic efforts to shore up supplies.