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Iran Conflict 2026
25MAY

War leaves US farms 2m tonnes short

2 min read
13:55UTC
ConflictDeveloping

The Fertilizer Institute projects US farmers will be short 2 million tonnes of urea this spring, with urea prices up 30% since the war began. Some farmers cannot obtain supply at any price. 1 Spring planting is underway now. The shortage is not a forecast; it is a current constraint on fields being sowed this week.

The domestic economic pressure from this conflict has been building. US gasoline had already reached $3.98 per gallon , up 36% from pre-war levels. US diesel previously topped $5 per gallon . The fertiliser shortage adds a production-cost dimension to the energy-cost dimension: fuel to run farm equipment costs more, fertiliser to grow crops costs more or is unavailable, and transport costs have increased across the supply chain.

Urea is synthesised from natural gas. Iran and Russia together account for approximately 25% of global urea exports. The war has simultaneously disrupted Iranian production via strikes on petrochemical facilities and Russian supply chains via shipping insurance complications in the Gulf. The shortage is structural, not speculative: the 2 million tonne shortfall represents approximately 15% of annual US nitrogen fertiliser demand.

Corn planted without adequate nitrogen produces thin, pale stalks and reduced yields. The Fertilizer Institute's projection implies yields on affected acres could fall 10-20%, with downstream effects on global grain prices by autumn 2026. No administration response has been announced. The political dimension is acute: rural America, which supported the war at higher rates than urban centres per Pew data , is the constituency absorbing the most direct economic blow from a conflict it disproportionately endorsed.

Deep Analysis

In plain English

American farmers need fertiliser for spring planting right now. Most of it comes by ship through the Strait of Hormuz, which Iran controls. The war has disrupted those shipments. If fertiliser does not arrive in time, food prices rise for everyone.

Deep Analysis
Root Causes

US agriculture's dependency on imported fertiliser via a single maritime chokepoint.

The spring planting window is biologically fixed. Farmers who miss it cannot recover the yield later in the season.

First Reported In

Update #49 · Hormuz toll into law; Tangsiri killed

Siasat / Al Jazeera· 27 Mar 2026
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Different Perspectives
Lloyd's of London
Lloyd's of London
The Joint War Committee left Hormuz war-risk premiums at $10-14 million per voyage on 25 May, declining to move on Brent's 5% fall. The JWC's protocol requires a UN Security Council resolution or bilateral government certification letter before de-listing, and neither has arrived: a verbal understanding does not satisfy the formal condition the reinsurance market's treaty terms require.
Gulf Arab producers
Gulf Arab producers
Saudi Arabia and UAE depend on Hormuz for their own crude exports; Aramco CEO Nasser has warned no oil market recovery arrives until 2027 if the blockade continues past mid-June. Monday's $98.96 Brent settlement shortens nothing for Gulf producers without a signed instrument and a Pentagon mine-clearance timeline that runs up to six months post-ceasefire.
Qatar
Qatar
Qatar holds $12bn of frozen Iranian assets at the centre of the sequencing dispute but cannot release them without explicit US Treasury authorisation, given the original freeze was a US instrument. As the asset-holding state, Qatar's leverage is real but passive: it is the escrow holder, not the decision-maker, and any resolution requires US Treasury sign-off that Trump has withheld.
Pakistan
Pakistan
With both Prime Minister Sharif and army chief Munir simultaneously in Beijing on 25 May, Pakistan has for the first time consolidated its civilian and military mediation tracks under China's roof. Munir's direct Tehran-to-Beijing flight signals that the security and financial threads of the sequencing problem are now being worked in parallel rather than sequentially.
China
China
Beijing hosted Pakistan's principal mediators and Iran's China envoy Ghalibaf simultaneously on 25 May while its banking regulator capped new state-bank lending to five sanctioned refiners. China is simultaneously the most credible third-party underwriter of the $12bn sequencing and the state whose institutions face live OFAC secondary-sanctions exposure if the deadlock persists through GL V's expiry.
United States
United States
Trump posted on 24 May that the blockade holds until a deal is certified and signed, ruling out the informal MOU structure both sides had been building. The 'certified, and signed' condition is the first operational bar Trump has attached in 87 days, but it arrived without an executive instrument, maintaining the gap between posted ultimatum and signed US policy.