Urea Prices Plunge 18% as Iran Reopens Hormuz Strait

Key Details Fertilizer prices dropped sharply on April 17 after Iran announced the Strait of Hormuz was open for commercial traffic. Urea, the most common nitrogen fertilizer, fell approximately 18% to $640 per ton in New Orleans, down from a peak of $780 earlier in the week. The Strait of Hormuz handles about one-third of the world's crop nutrient supplies and had been closed throughout the regional conflict. Why It Matters Farmers facing record-high fertilizer costs relative to corn prices are seeing some relief. However, the pricing benefits won't immediately solve planting season challenges, as it will take more than a month for new cargo to reach U.S. Gulf ports and travel upstream to the Midwest. Some growers already reduced corn acreage due to prohibitive fertilizer costs before prices began falling. What's Next Analysts caution that actual market improvement depends on increased vessel traffic through the strait. StoneX senior fertilizer analyst Quan Nguyen noted that minimal ship traffic in the ceasefire's initial hours suggests cautious optimism. The Trump administration had previously indicated it could take several months for fertilizer costs to normalize, with Agriculture Secretary Brooke Rollins acknowledging the lag time for relief.