Iran War Deepens Fertilizer Crisis, Threatens Global Phosphate Supply

The global fertilizer market is facing growing disruption as the Iran War March 2026 intensifies supply pressures, raising fresh concerns over phosphate fertilizers, essential for global food production.

While initial attention centered on nitrogen-based fertilizers such as urea, a more serious threat is emerging in phosphate markets due to tightening supplies of sulfur, a critical component in fertilizer processing.

The Middle East accounts for nearly half of the world’s sulfur supply, which is used to produce sulfuric acid for processing phosphate fertilizers. However, ongoing disruptions in the Strait of Hormuz are threatening shipments of both sulfur and phosphate-based products.

Analysts warn that supply chain pressures could accelerate if the conflict persists, as producers begin to deplete existing inventories of sulfur and sulfuric acid.

Phosphate fertilizers are essential for crops such as soybeans and potatoes, making the crisis a direct threat to global food security. Rising costs and supply shortages could reduce agricultural output and drive food prices higher.

Farmers, particularly in the United States, are already facing elevated input costs, and the latest disruptions are expected to add further strain.

Even before the conflict, global supplies of phosphate and sulfur were already constrained. Export restrictions from Russia, linked to the Russia Ukraine War 2022, and reduced shipments from China have tightened the market.

Additional pressure has come from U.S. trade policies, including tariffs on phosphate imports from Morocco, which holds the world’s largest phosphate reserves.

Industry experts say phosphate markets are now under greater pressure than nitrogen fertilizers. With sulfur prices reaching record highs and competing demand from sectors such as mining, fertilizer producers are struggling to secure sufficient inputs.

At the same time, disruptions have led to force majeure declarations across multiple facilities, highlighting the severity of the supply crunch.