Australia's fertilizer supply vulnerable after Middle East freight disruptions

Analyst Isaac Zhao of China Fertilizers warned that the Middle East, especially the Strait of Hormuz, is a critical chokepoint for global fertilizer supplies. The closure of the strait caused urea prices to surge 60‑70%, reflecting that about 30% of the world's urea originates from the region. Similar pressures hit ammonia, with roughly 20% of global output passing through the strait, and phosphorus, where prices rose 20‑30% as Saudi Arabia rerouted product by road at higher cost. Shortages of sulphur have also emerged. These supply-chain shocks pose a significant risk to Australia's fertilizer imports and broader agricultural sector.