Fertilizer Shipments Resume Through Hormuz Strait

The shipment of fertilizers through the Strait of Hormuz is gradually resuming following the conclusion of a preliminary agreement between the United States and Iran. However, analysts note that it will take several weeks to months to return to pre-conflict levels.

During the war, shipments of urea, the world's most widely used fertilizer, and sulfur, a key raw material for fertilizer production, were significantly restricted, triggering a sharp rise in prices and concerns about a decline in agricultural production and rising food prices.

Since mid-June, hundreds of thousands of metric tons of sulfur and urea have been transported through the strait, but a large portion of the shipments is intended to fulfill older contracts.

In addition, hundreds of ships remain in the area awaiting safe passage, and traders are concluding only a minimal number of new deals.

The situation is complicated by damaged production facilities in the Persian Gulf, the need to clear mines from the shipping route and uncertainty surrounding the durability of the ceasefire. Experts estimate that a more significant recovery in the fertilizer market can be expected no sooner than August.

(Reuters, mja)