The War in Iran Causes Rapid Increase in Prices of Nitrogen Fertilizers in Ukraine
At the beginning of March 2026, the Ukrainian agrochemical market is experiencing a sharp rise in prices for nitrogen fertilizers. In particular, the average cost of UAN has increased by 1000 UAH per ton, while the price of urea has risen by nearly 1500 UAH per ton, which has dealt a significant blow to domestic farmers.
This is reported by AgroReview
Impact of the Conflict in Iran on the Fertilizer Market
Experts note that this year’s traditional spring price increase has significantly accelerated due to the war in Iran. Tensions in the region have led to serious concerns about the stability of the global nitrogen fertilizer market. A significant portion of global supplies of raw materials and finished products passes through the Strait of Hormuz, which is in the conflict zone, directly affecting the availability and prices of fertilizers in many countries, including Ukraine.
“This year’s traditional spring price increase has accelerated against the backdrop of the war in Iran. The global nitrogen fertilizer market is shocked by the situation in the Middle East, as a significant volume of raw material and finished product supplies passes through the Strait of Hormuz,” the statement reads.
Strategies of Agricultural Producers and Market Prospects
Given the situation in the Persian Gulf, Ukrainian farmers are forced to actively replenish their stocks of nitrogen fertilizers, trying to protect themselves from possible supply disruptions and sudden price spikes. The further development of events in the Middle East will affect fertilizer prices. In the event of a prolonged conflict and complications with logistics, fertilizer prices may continue to rise, impacting farmers’ costs during the spring planting campaign.
It is known that fertilizers account for 40–50% of variable costs in growing grain crops, so the rising cost of this resource can significantly affect production profitability. According to Rabobank estimates, Middle Eastern countries provide 44% of global urea supplies, 27% of ammonia, and about 25% of phosphate fertilizers. Despite high global stocks of grains and oilseeds, the war in Iran is currently affecting prices mainly due to rising energy and freight costs.