A military operation conducted by the United States and Israel against Iran has disrupted global fertilizer and oil supplies, imposing economic strain on American farmers. The conflict began a week ago and is impacting critical shipping routes including the Strait of Hormuz.
The Strait of Hormuz, which carries approximately 20 percent of the world’s daily oil supply and a quarter of global nitrogen fertilizer exports, is experiencing near-shutdown conditions due to security threats and rising insurance costs. As a result, shipments of fuel and agricultural inputs have tightened significantly.
For farmers preparing for planting season, the timing has been disastrous. Fertilizer prices have surged, with supplies becoming increasingly difficult to secure. South Dakota farmer Chet Edinger reported that he purchased a final shipment of urea fertilizer earlier in the season at 22 percent higher costs than the previous year. Since then, the market has effectively stalled.
“You can’t even buy it right now if you wanted to,” Edinger said.
Analysts describe the global fertilizer market as nearly frozen, with price increases already recorded at major ports like New Orleans. Disruptions in production from Iran and Qatar—key exporters of nitrogen-based fertilizers—have intensified pressure on the global urea supply. Linville warned that prices are likely to continue rising until demand decreases or supply routes stabilize.
Fuel costs are also escalating, further straining farm operations that rely heavily on diesel for equipment and transportation. The agricultural sector faces mounting financial pressure, with farm bankruptcies on the rise and concerns growing that prolonged instability could accelerate consolidation as large corporations acquire struggling farms.
The White House has emphasized that the disruptions are temporary and stated the administration remains committed to supporting farmers. President Donald J. Trump recently unveiled a $12 billion aid package for farmers and previously pledged that they would receive a share of tariff revenues from new trade policies.
Meanwhile, Trump has indicated that he will only accept “unconditional surrender” from Iran in order to end the conflict.
