August 6 International Fertilizer and Agriculture News

Strait of Hormuz Shipping Lane Pattern Changes

Iran and Oman are close to reaching a transit agreement. The original north-south shipping lanes used for 60 years will be closed, and a new temporary shipping lane will be opened. Some sections of the route will pass through Iranian territorial waters, and the temporary lane will be valid for 2-4 months. The channel carries around 35% of global seaborne urea trade and 45% of sulfur exports, directly affecting supply chains for nitrogen fertilizers and phosphate fertilizer raw materials. Although navigation has resumed, transit rules have changed, and risks remain from war-risk insurance premiums and shipping delays. The market is therefore retaining a geopolitical risk premium. The United Nations warned that if disruptions occur again, sulfur, urea, and synthetic ammonia prices would be pushed sharply higher, transmitting pressure to global food costs.