Hormuz Fertilizer Shipments Rebound Sharply After U.S.-Iran Peace Deal

Global fertilizer exports through the Strait of Hormuz have rebounded significantly following an interim U.S.-Iran peace agreement, easing supply chain disruptions that had threatened food inflation. At least 16 vessels carrying crop nutrients have exited the strait since the deal, with weekly export volumes climbing to approximately 530,000 tons in the week ending June 21, 2026—nearing pre-war levels, according to ship-tracking data from Bloomberg and intelligence firm Kpler.

Of the more than 40 ships stranded in the Persian Gulf since the start of the conflict, at least 18 have now departed, with most bound for Asian markets including China, India, and Sri Lanka. India, the world’s largest importer of urea and diammonium phosphate fertilizers, is a key destination. One vessel is also en route to Brazil, where buyers are stockpiling supplies ahead of soybean planting season in September.

The recovery in Hormuz traffic follows the U.S.-Iran interim peace deal, which has restored confidence in the resumption of critical trade flows. While full normalization of shipments may take several weeks due to congestion and competition among hundreds of vessels, the immediate uptick in exports has already triggered a sharp decline in urea prices. Analysts at CRU Group noted that the resumption of shipments should alleviate some supply pressure, reducing one of the biggest risks to global food inflation.

Ship-tracking data indicates that Hormuz traffic remained active on June 23, 2026, with 31 verified crossings across commercial and energy-linked vessels. West-to-east movements dominated, while Iranian, Omani, and International Maritime Organization (IMO) routes remained operational. However, some vessels that were stranded in the Persian Gulf have not transmitted location signals for months, leaving uncertainty about their status.

The Gulf region is home to some of the world’s largest fertilizer plants, and the Strait of Hormuz handles roughly one-third of global urea trade. The conflict-driven disruption had trapped massive volumes of agricultural cargo, exacerbating supply concerns. With shipments now resuming, the market is responding quickly, though the pace of recovery depends on how swiftly the remaining vessels can clear the strait.