British newspaper, The Financial Times, released an article surmising that the blocking of the Hormuz Strait and the ongoing conflict with #Iran would be the cause of an oncoming global food crisis. The article read: - The main problem is rela...
...ted to a shortage of urea, the most common nitrogen fertilizer in the world, writes the Financial Times. - According to the analytical company Kpler, out of 2.1 million tons of urea, almost half did not reach the global market: more than 1.1 million tons of fertilizers are now accumulating in the Persian Gulf amid the escalation of the conflict. - Additional pressure is exerted by rising prices for natural gas, which is used in the production of nitrogen fertilizers from ammonia. Due to th...
...e rising cost of gas, some factories in Asia have already been forced to suspend production. - The Middle East plays a key role in the global trade of fertilizers and energy resources: about a third of the global export of urea passes through the Strait of Hormuz. - Against the backdrop of blocked shipping, the price of urea has risen by more than 40% since the beginning of the conflict. - It was also previously noted that about 26% of the global trade in nitrogen fertilizers passes throug...
...h the Strait of Hormuz.