Fertiliser shipments through the Strait of Hormuz have begun recovering following an interim agreement that ended the Iran war, easing fears of a prolonged disruption to global supplies, although trade remains well below pre-conflict levels, industry data showed.
Before the United States and Israel launched military operations against Iran on February 28, around one-third of globally traded urea, the world’s most widely used fertiliser, and nearly half of seaborne sulphur, a key fertiliser feedstock, normally passed through the strategic waterway.
The conflict, which brought traffic through the strait close to a standstill for much of the three-and-a-half-month war, sharply curtailed exports and sent fertiliser prices higher.
Since Washington and Tehran announced an interim agreement on June 15, shipments have started to recover.
About 640,000 metric tonnes of sulphur used to produce fertilisers such as diammonium phosphate (DAP) have passed through the strait, bound for destinations including Indonesia, Morocco, Tanzania and China, according to price reporting agency Argus.
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That compares with only 80,000 tonnes shipped during the entire conflict.
Urea exports have also increased, with consultancy CRU reporting that around 427,000 tonnes have transited the strait since the truce, compared with 275,000 tonnes during the war.
Shipments of other fertiliser products, including phosphates and ammonia, have also picked up.
The disruption had fuelled concerns over global food security, as rising fertiliser prices forced some farmers to reduce application rates, raising fears of lower crop yields and higher food prices if the closure had persisted.
Despite the improvement, analysts said trade has yet to return to normal.
More than 500 ships remain stranded in the Gulf and, while vessel movements have increased this week, traffic remains well below the usual average of around 125 ships transiting the Strait of Hormuz each day.
Analysts said it could take weeks or months for shipping flows to return to pre-war levels as operators work through the backlog and assess the security situation in the region.
