Iran vs. Israel: Conflict Raises Concerns in Urea Market and Could Increase Costs in Brazil

The conflict between Israel and Iran has generated instability in the international nitrogen fertilizer market, with direct impact on global prices and supply. According to the weekly report from StoneX, a financial services company, Urea production in Iran and Egypt, two of the main manufacturing hubs in the Middle East, has been interrupted. In Egypt, the stoppage occurred due to a lack of natural gas, a consequence of reduced supply from Israel. In Iran, urea and ammonia factories are paralyzed due to risks associated with the war, which aggravates the shortage in the international market. "It is worth remembering that Egypt and Iran are among the main global urea exporters, and therefore, the interruption in production in these countries is a cause for concern for international buyers," stated Tomás Pernías, Market Intelligence Analyst at StoneX. The increase in geopolitical risk has also caused an elevation in freight and maritime insurance costs, especially on routes ...