Tensions in the Strait of Hormuz remain acute as the US and Iran clash over shipping controls, leading to a volatile market environment. While Iranian officials announced a temporary reopening of the strait, recent actions, including the US naval blockade and reported attacks on commercial vessels, have intensified uncertainty.
Oil prices saw fluctuations, with Brent falling 9.1 per cent to USD 90.38 per barrel, only to rebound to more than USD 95 per barrel as fears of a failed ceasefire grew.
Meanwhile, global fertilizer markets face severe supply shocks tied to geopolitical conflicts and production disruptions, exacerbating food security concerns, particularly in developing regions.
China’s tightening export restrictions further limit availability, contributing to rising prices for crucial agricultural inputs. As discussions around peace talks stall, the longer-term outlook for both oil and agricultural sectors remains precarious, with indications that recovery from these supply crises could take months.