By Jamie Martin
Farmers across the United States are entering the 2026 spring planting season while global tensions in the Middle East create uncertainty for fertilizer and energy markets. The timing is critical because farmers are currently purchasing fertilizers and preparing fields for planting.
The Persian Gulf region is a major center for fertilizer production and export. Countries connected to this region supply about 49% of the world’s urea exports and roughly 30% of global ammonia exports. These nitrogen products are essential for crop growth and food production.
A key shipping route in the region is the Strait of Hormuz. Large volumes of energy and agricultural inputs pass through this narrow waterway each year. In 2024, oil shipments through the Strait averaged about 20 million barrels per day, equal to about one fifth of global petroleum liquids consumption.
Energy prices strongly influence fertilizer production. Natural gas is the main ingredient used to produce ammonia, which is the base for most nitrogen fertilizers. Iran holds some of the largest natural gas reserves in the world, making the region especially important for fertilizer supply chains.
Several major fertilizer producers operate near the Persian Gulf, including Iran, Qatar, Saudi Arabia, and Egypt. Fertilizer inputs such as urea, ammonia, sulfur, and phosphates are shipped through the region to many countries around the world.
Fertilizer markets are closely connected globally. Even when the United States does not directly import large volumes from the Middle East, supply disruptions in the region can still affect domestic prices. Countries that normally purchase fertilizers from the Persian Gulf may shift demand to other suppliers, increasing competition in global markets.
Farmers are already dealing with high production costs. Fertilizer and fuel are two of the largest expenses in modern agriculture. Diesel is required for many farming activities such as soil preparation, planting, fertilizer application, and crop transportation.
Spring is also a peak period for fertilizer use. About half of the nitrogen used for corn and significant portions used for cotton and spring wheat are applied during early season of fieldwork.
If fertilizer shipments face delays or price increases, farmers may adjust crop plans. Some producers may plant crops that require less fertilizer, such as soybeans.
As the planting season progresses, global energy and fertilizer developments will continue to influence farm costs, crop decisions, and agricultural markets.
Photo Credit: gettyimages-songdech17
Categories: National