CRU Group, a company specializing in minerals consulting, reported today, Monday, an increase in the prices of some types of fertilizers, as a result of the impact of the escalation of the conflict in the Middle East on supplies transiting through the Strait of Hormuz.
The company’s analyst, Chris Lawson, explained: “Our best indicator is urea in Egypt. The price of urea on board was evaluated at $485-490 per ton on Thursday. The latest deal announced today reached $550 per ton. We expect further increases.”
Events escalated after the United States and Israel launched new military strikes on Iran, following the weekend attacks that resulted in the killing of Iranian Supreme Leader Ayatollah Ali Khamenei, which prompted Tehran to launch missiles across the region, raising fears of a widening scope of the conflict and the possible involvement of other neighboring countries in it.
In a later development, Iran closed the Strait of Hormuz, which is the passage through which tankers normally pass carrying oil estimated at approximately one-fifth the volume of global demand, coming from countries such as Saudi Arabia, the Emirates, Iraq, Iran and Kuwait. In addition, other tankers carrying diesel, jet fuel, gasoline and other products are crossing, heading from these countries’ refineries to major Asian markets, including China and India. (Arabic)
