Fertilizer Giant Warns: Nitrogen Fertilizer Prices Already at High Levels, Yet Set to Rise Further

One of the world's leading nitrogen fertilizer exporters has warned that if shipping disruptions in the Persian Gulf continue, nitrogen fertilizer prices, already at elevated levels, may climb even higher, posing tangible pressure on global food security. Ahmed El-Hoshy, CEO of Abu Dhabi-based Fertiglobe Plc, stated in an interview that "prices are already quite 'high,' but if the situation persists, they could rise further." He also cautioned that this situation poses a severe challenge to agriculture and may eventually transmit to food prices. Currently, the blockade at the Strait of Hormuz has cut off approximately one-third of seaborne fertilizer trade, sparking market fears of a food crisis. Nations are racing to secure alternative supplies, but some major producing countries have imposed export restrictions, forcing many buyers to pay premiums to compete for limited stock. Nitrogen Fertilizer Prices Nearly Double Since Pre-War Levels, Soaring Costs Hit Demand Ahmed El-Hoshy noted that current nitrogen fertilizer prices have nearly doubled compared to levels before the outbreak of the Iran war, while high fertilizer costs are beginning to suppress agricultural demand. Fertiglobe has observed signs of slowing procurement by buyers in regions such as Sub-Saharan Africa and Australia, with markets having weaker price sensitivity hit particularly hard. El-Hoshy warned that if sustained high fertilizer costs feed through to food prices, it will further intensify global food security pressures—a risk especially acute for developing economies reliant on food imports. Iran announced last Friday that ships could resume passage through the Strait of Hormuz, but less than 24 hours later, passage was interrupted again as tensions escalated. The conflict has now entered its eighth week, with significant divergence between the United States and Iran regarding the next phase, leaving the prospects for peace talks highly uncertain.