The situation in the Middle East affects global fertilizer supplies.

Apart from oil, a crisis in fertilizer supply is also looming. The Economic Times of India reported on the 7th that shipping through the Strait of Hormuz has almost completely ground to a halt at present, which could disrupt global agriculture. The report believes that while oil shortages dominate the headlines, a deeper and potentially more persistent risk is surfacing beneath the surface - a global fertilizer supply shock could eventually translate into food shortages and price hikes. 
Bloomberg's review last week found that the Middle East is one of the major global fertilizer production areas, with about one-third of the total global fertilizer supply transported through the Strait of Hormuz. Iran itself is a significant exporter of nitrogen and phosphate fertilizers. The latest conflict is rapidly causing a "dramatic impact" on the global fertilizer materials market. As of last week, the price of urea in the US market had risen to $550 per ton, a surge of $70 from the previous week. Besides the US, major agricultural countries such as Australia, Brazil, and India have also been affected.

Among them, about two-thirds of Australia's urea is imported from the Middle East. A farmer in Queensland, Australia, told Bloomberg that some suppliers urged him to pick up the previously ordered fertilizers as soon as possible, otherwise other farmers would come to snap them up. Brazil is the world's largest soybean exporter. If the increase in fertilizer costs hits Brazilian farmers, the global soybean market may be affected. Some sources also told the Economic Times of India that domestic fertilizer prices in India are likely to soar. Statistics show that India needs to import about 2 million tons of various fertilizers every month to meet domestic demand. An Indian agricultural expert said, "As the Middle East supply chain tightens, the cost of urea is expected to rise by 30% to 40%." 
The Financial Times of the UK quoted analysts' warnings that disruptions in fertilizer supply could lead to a rise in global food prices, with the prices of bread, eggs, pork and poultry likely to increase in the coming months. It is worth noting that the energy market usually responds relatively quickly to geopolitical shock waves, but food production is a seasonal and cyclical operation, so the response time in this field will be delayed. That is to say, the shock waves of the tense situation in the Middle East may not be reflected in the global food supply chain until several months later. If fertilizer production in the Gulf region continues to be disrupted and the transportation of fertilizers through the Strait of Hormuz remains restricted, the global market may first face a shortage of fertilizers this year, and food prices may rise this year and in the following period. 
In addition, Bloomberg has noted the potential impact on the global olive oil industry. Statistics show that olive tree cultivation is concentrated in Southeast Asia, and about 40% of global olive oil is produced by small-scale growers. A Malaysian olive oil industry regulator has disclosed that if fertilizer prices rise, small-scale growers may have to forgo fertilization, and production capacity will decline in the following months.