Fertilizer prices have surged due to the Iran conflict disrupting natural gas supplies and trade through the Strait of Hormuz. Natural gas is critical for ammonia-based fertilizer production, making costs highly volatile. Urea prices exceeded $850 per metric ton in April—80% above pre-conflict levels and the highest since 2022.

Trade disruptions threaten access for poorer nations. Companies like Pivot Bio and Switch Bioworks offer microbe-based alternatives not reliant on fossil fuels. Pivot increased production and locked in three-year pricing for farmers.

Experts warn high fertilizer costs could persist through 2028 due to damaged ammonia plants in the Middle East and Russia. Rising fertilizer costs pressure farm margins and contribute to higher food prices, linking agricultural affordability directly to energy markets.