The Iran war has caused disruptions in the shipping lanes of the Strait of Hormuz, leading to a surge in energy prices and fertilizer prices, impacting rice planting and production in Asia and causing a rapid increase in rice prices. Bloomberg reported on Wednesday (April 15) that the price of Thai 5% broken white rice, which serves as the benchmark for Asian rice prices, had risen to $423 per ton (approximately 538 Singapore dollars) by the week ending April 8, marking a 10% increase and the largest rise since August 2023. The Middle East is one of the key production areas for fertilizers such as urea, diammonium phosphate, and anhydrous ammonia, with the four countries of Qatar, Saudi Arabia, Bahrain, and Oman collectively producing about 15 million tons annually. The Strait of Hormuz remains closed, blocking not only the transport of oil and gas products from the Gulf states but also causing a large backlog of fertilizer products and significantly increasing market prices. Additionally, Asian rice farmers use diesel fuel when operating agricultural machinery such as tractors, irrigation water pumps, and transplanters. With both energy and fertilizer prices rising, Oscar Tjakra, a senior bulk commodities analyst at Rabobank, said that some Thai farmers have even stopped planting rice because the profits from rising rice prices are not enough to cover the increased costs. According to the US Department of Agriculture, Thailand is the world's third-largest rice exporter. Tjakra added that the prolonged dry season has exacerbated the farmers' plight, leading to a significant reduction in rice production and making the current rice supply more strained. Additionally, the conflict in the Middle East has increased transportation costs and insurance fees, further driving up rice prices. US President Trump said he may be ready to gradually end the war with Iran, and the US and Iran may begin a new round of negotiations as early as this week. However, the negotiations between the two sides still face many differences, and it will take some time for the Strait of Hormuz to fully reopen, making it difficult for oil and fertilizer prices to quickly drop in the short term.