Source: brownfieldagnews.com Urea prices in the global market have declined back to levels before the escalation of tensions in the Middle East. According to Veronica Nigh, chief economist of the Fertilizer Institute, the reason is that global demand has now balanced more with the available supply. Photo: brownfieldagnews.com However, Ms. Nigh believes the market should not be overly optimistic. Urea demand usually increases in the second half of the year, while trade disruptions due to geopolitical tensions still need more time to be resolved. Even though the United States and Iran have signed a memorandum of understanding, the market must still monitor when the Strait of Hormuz is fully reopened, as well as the possibility of trade flows and production activities returning to normal. According to Ms. Nigh, volatility is likely to remain a dominant factor in the urea market in the coming period. Currently, nearly 50% of global urea exports have been affected by the closure of the Strait of Hormuz.