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Iran War Drives Diesel, Fertilizer Prices Skyward, Threatens Food Security

3/21/2026

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Summary

Story summary

The war in Iran is driving up diesel and fertilizer costs, threatening global food security.
Diesel prices have surpassed $5 per gallon, raising transportation costs for goods, including food.
Fertilizer prices have risen about 40%, with urea export prices moving from under $500 to over $700 per metric ton.
The closure of the Strait of Hormuz threatens about one-third of global fertilizer trade, risking shortages for India and Brazil.

History

Historical Context

The 1973 oil crisis began when the Organization of Arab Petroleum Exporting Countries (OAPEC) imposed an embargo in response to Western support for Israel during the Yom Kippur War. This led to a 400% increase in oil prices, triggering global inflation and economic recession, particularly in the U.S. and U.K. Today’s rising diesel prices reflect ongoing geopolitical tensions and their impact on energy markets.

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Story summary

The war in Iran is driving up diesel and fertilizer costs, threatening global food security.
Diesel prices have surpassed $5 per gallon, raising transportation costs for goods, including food.
Fertilizer prices have risen about 40%, with urea export prices moving from under $500 to over $700 per metric ton.
The closure of the Strait of Hormuz threatens about one-third of global fertilizer trade, risking shortages for India and Brazil.

1 / 2