Fertilizer exports through the Strait of Hormuz have risen to pre-war levels – Bloomberg
Exports of mineral fertilizers through the Strait of Hormuz have shown rapid growth, bringing supply volumes to the global market back to the levels recorded before the military escalation began.
Due to the start of U.S. military operations against Iran and the de facto closure of the Strait of Hormuz to commercial shipping, more than forty civilian vessels fully loaded with agrochemical products were stranded in the Persian Gulf. However, following recent temporary agreements and a compromise between Washington and Tehran, the crisis has been partially resolved.
Over the past week, at least sixteen large bulk carriers carrying urea and other types of fertilizers have safely passed through the strategic waterway. The total volume of shipments during this period soared to nearly 530,000 metric tons, whereas at the height of the conflict, export flows in this region had ground to a halt.
This maritime corridor is critical to the global agricultural sector, as it accounted for approximately one-third of all global urea exports—a key component for fertilizing crops—before hostilities began. Leading industry analysts note that the restoration of logistics routes has already had a positive impact on international commodity exchanges: prices for nitrogen fertilizers have begun to decline significantly, and the threat of a large-scale shortage of raw materials ahead of the start of the upcoming planting seasons is gradually subsiding. At the same time, experts note that although market tensions have noticeably eased, it will take several more weeks to completely clear the backlogs and stabilize global supply chains due to the overall congestion at ports.
Bloomberg reports this, citing an analyst from Kpler.
As a reminder, global prices for Brent crude fell after the conclusion of talks between the U.S. and Iran in Switzerland, during which Tehran announced that it had secured exemptions for the export of oil and petrochemical products. This eased market concerns about a potential supply shortage.
Global oil prices fell sharply on Thursday, June 19, amid reports of an agreement between the U.S. and Iran. Brent futures fell to $77.96 per barrel, while WTI futures dropped to $74.96, their lowest levels since late February.
The U.S. and Iran will create a $300 billion fund to rebuild the economy — Reuters.
Peace on Tehran’s Terms: Why the Deal with Iran Looks More Like a U.S. Capitulation.
