Price of urea tops $700, up 50% since beginning of Iran war

The price of urea – a widely used fertilizer – climbed 2% on Tuesday, topping the $700 threshold for the first time since 2022, amid the ongoing closure of the Strait of Hormuz.

The price of urea, at $701.25 per ton as of 1645GMT, has risen by around 50% since the beginning of the Iran war and more than 70% from the beginning of the year.

Around 44% of sulfur, 31% of urea, 18% of ammonia and 15% of phosphates – all key fertilizer components – transit the Hormuz region.

The Strait of Hormuz is one of the world's most critical transit ways, particularly for energy, with around 20 million barrels of oil passing through it daily.

Iran's Islamic Revolutionary Guard Corps announced the closure of the strait following the start of US-Israeli attacks against Iran on Feb. 28.

The region has been on alert since the start of the attacks, so far killing more than 1,340 people, including then-Supreme Leader Ayatollah Ali Khamenei. Iranian authorities have not updated the death toll in recent days.

Tehran has retaliated with drone and missile strikes targeting Israel, Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damage to infrastructure, while disrupting global markets and aviation.

President Donald Trump has set an 8 pm ET Tuesday deadline (0000GMT Wednesday) for Iran to reopen the Strait of Hormuz before the US begins attacks on critical infrastructure.