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Urea Prices Jump 55% Amid Hormuz Closure, FTC Probes

6/1/2026

41 9 Full Breakdown

Summary

Story summary

The Strait of Hormuz closure after the Iran conflict raised U.S. urea prices 55%.
The Federal Trade Commission opened an investigation into the fertilizer price surge while the Department of Justice probes violations among producers.
President Donald Trump said production is a priority while USDA data show costs are the largest rise since 2020.
Midwestern farmers secured 2026 fertilizer supplies, with 67% covered and 20% still facing higher costs.

History

Historical Context

After OAPEC’s October 1973 oil embargo—led by Saudi Arabia—to punish U.S. support for Israel, world oil prices surged nearly 300% by March 1974, prompting governments to seek domestic fertilizer security. Decades later, the 2023 closure of the Strait of Hormuz amid Iran-U.S. tensions lifted U.S. urea prices by about 55%, reviving federal scrutiny of fertilizer imports.

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Story summary

The Strait of Hormuz closure after the Iran conflict raised U.S. urea prices 55%.
The Federal Trade Commission opened an investigation into the fertilizer price surge while the Department of Justice probes violations among producers.
President Donald Trump said production is a priority while USDA data show costs are the largest rise since 2020.
Midwestern farmers secured 2026 fertilizer supplies, with 67% covered and 20% still facing higher costs.

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