Middle East Strikes Push Global Urea Prices Higher

Jul 01, 2025
By Farms.com

Fertilizer Supply Disrupted as Iran and Egypt Halt Output

Global urea prices have surged due to escalating Middle East conflict, which has disrupted production and trade in key fertilizer-exporting countries. Iran and Egypt, two major producers, have stopped nitrogen fertilizer output following military strikes.

Bloomberg reported a 16% jump in U.S. Gulf urea prices and an 11% rise in Middle East rates. The region accounts for over half of global urea exports, making any disruption significantly impactful on the fertilizer market.

StoneX’s Josh Linville emphasized the scale of the situation: “We have seen Iranian production shut off… So, we lost numbers three and four for global exporters and very quickly because of these strikes.”

Iran preemptively shut down gas fields, halting urea production. Egypt also suspended production due to its reliance on Israeli gas.

Further complicating matters, Iran has threatened to close the Strait of Hormuz—a vital passage for both oil and fertilizer exports—raising fears of broader energy market disruptions. 

Although a ceasefire helped ease prices slightly, Linville noted that supply issues persist. “We think the price is going to come down from the highs… but I also don’t believe it’s going to come down to the lows we had previously expected.”

Meanwhile, the Renewable Fuels Association called for regulatory changes to allow broader E15 fuel sales. President Geoff Cooper urged government action to support fuel access, saying, “We wholeheartedly support that vision and believe now is the time to act.”

With major supply sources offline and transportation routes under threat, the fertilizer market remains under stress, with volatility expected to continue.

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