Episode 1464: Think Tank: Strait of Hormuz closure disrupts global fertilizers, more risks to food as war persists

About this episode

The episode discusses the impact of the Strait of Hormuz closure on global fertilizer supply and the potential risks to food security amid ongoing conflict.

The closure of the Strait of Hormuz is having a severe and unprecedented effect on fertilizer supply because so much production is concentrated in the Middle East. - If war drags on, danger of two-tier food economy developing with lower tier suffering shortages - Poorer countries may be priced out of the fertilizer market - Food impact will be seen later this year and into 2027 - Unique situation because fertilizer supply is very concentrated around the Strait of Hormuz, so the effect is amplified - Global ammonia, sulphur markets heavily impacted by the Iran war - Carbon Border Adjustment Mechanism (CBAM) applies carbon tax on EU imports - It will replace free allocations under Emissions Trading Scheme (ETS) - As imports become more expensive, downstream sectors argue they suffer raised raw material costs - Proposal to suspend CBAM on fertilizers In this ICIS Think Tank podcast, Will Beacham interviews ICIS ammonia reporter Sylvia Tranganida , ICIS ammonia analyst Bee Lin Chow , ICIS sulphur reporter Manuja Pandey , ICIS phosphatic fertilizer reporter Chris Vlachopoulos and ICIS data analyst Grégoire Ladouce .

People in this episode

Host: Will Beacham

Guests: Sylvia Tranganida, Bee Lin Chow, Manuja Pandey, Chris Vlachopoulos, Grégoire Ladouce

Topics covered

• fertilizer supply
• Strait of Hormuz
• food economy
• global markets
• carbon tax
• agriculture

Keywords

• fertilizer
• Strait of Hormuz
• food shortages
• carbon tax
• global ammonia market
• sulphur markets
• Iran war
• CBAM
• agriculture

Mentioned in this episode

Organizations: EU, Emissions Trading Scheme, Carbon Border Adjustment Mechanism

Places: Strait of Hormuz

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