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Hormuz Fertilizer Flows Recover Significantly
Urea Prices Plunge as Fears of Prolonged Supply Disruption Fade
Key Takeaways:
- Fertilizer shipments through the Strait of Hormuz have resumed after a U.S.-Iran interim peace deal, with at least 16 vessels exiting and flows nearing prewar levels.
- Exports climbed to about 530,000 tons in the week ended June 21 as stranded cargoes moved, easing supply concerns that had driven food inflation risks, analysts said.
- Deliveries to key markets including Asia and Brazil are underway, though additional vessels may still emerge and full normalization could take several weeks.
Fertilizer exports through the Strait of Hormuz have picked up considerably since last week, increasing supplies to the global market after the Iran war trapped large volumes in the Persian Gulf.
At least 16 vessels laden with crop nutrients have exited the strait since the U.S. and Iran signed an interim peace deal, with volumes edging closer to pre-war levels, according to ship-tracking data compiled by Bloomberg and intelligence firm Kpler. At least 18 of more than 40 ships that were stranded since early on in the war have now left, with most headed for Asia.
The agricultural industry has been closely watching the pace of exits amid expectations that an uptick could be gradual as hundreds of vessels carrying a variety of cargo compete to leave. The Gulf region is home to some of the world’s biggest fertilizer plants, and the waterway handled about one-third of the global trade in urea — one of the world’s most important crop nutrients.
Weekly fertilizer exports through Hormuz have climbed back from near zero for most of the war to almost 530,000 tons in the week ended June 21, Kpler data shows. Early tracking for the current week indicates that shipments are continuing to recover, according to the firm.
Asian destinations that the vessels are signaling include China, India and Sri Lanka. India is the top importer of urea and diammonium phosphate fertilizers. One vessel is headed to Brazil, where buyers are building fertilizer inventories ahead of soybean plantings, which begin around September.
“Now that the shipments have resumed, some supply pressure should be alleviated,” said Pranshi Goyal, a senior analyst at consultancy CRU Group.
Hormuz traffic cautiously improves
Confirmed Strait of Hormuz traffic stayed active on 23 June, with 31 verified crossings across commercial and energy-linked vessels. West-to-east movements dominated, while Iranian, Omani and IMO routes all remained in use. The Strait appears… pic.twitter.com/TOe354A89q — Kpler (@Kpler) June 24, 2026
While it could take several weeks for the cargoes to reach buyers, urea prices have already plunged as fears of a prolonged supply disruption faded. The dramatic reversal from the early weeks of the war eased one of the biggest threats to food inflation.
It’s also possible that other vessels laden with fertilizers have made it out. Several ships that were stuck in the Persian Gulf haven’t transmitted signals on their locations for months, meaning they could have gone dark before they left and are still yet to turn their transponders on.
