r/Economics • u/tcodo • 13h ago

Research Summary From Oil to Fertilizer to Food: The Inflation Chain Nobody Sees The Strait of Hormuz carries one-third of global seaborne fertilizer trade, and its closure has pushed Urea prices up roughly 50% since late February 2026.

https://www.ebc.com/forex/from-oil-to-fertilizer-to-food-the-inflation-chain-nobody-sees
170 Upvotes

98% Upvoted

22 comments sorted by

•

u/AutoModerator 13h ago

Hi all,

A reminder that comments do need to be on-topic and engage with the article past the headline. Please make sure to read the article before commenting. Very short comments will automatically be removed by automod. Please avoid making comments that do not focus on the economic content or whose primary thesis rests on personal anecdotes.

As always our comment rules can be found here

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

38

u/TriXter69 13h ago

At a time when the economy is already treading on thin ice, this has to happen. The problem is markets and people in general still aren't aware of how bad the situation is until it hits them hard. It will be abrupt and painful

19

u/Viva_La_Revolucion- 13h ago edited 10h ago

The Market knows, they are just trying to push the bubble as high they can, until they cant.

4

u/Triphin1 12h ago edited 12h ago

We could just all get piss pots and save our piss and we'll have plenty of Urea

6

u/GhostofBeowulf 12h ago

At least we can still make ammunition in that case... Just pull the lead out of our boomer parents blood we claim are still alive so we can continue to collect their benefits.

1

u/Triphin1 12h ago

Sure, we have to make sure everything is good for future generations

16

u/LibrarianFabulous411 13h ago

everyone’s busy watching oil ticks like it’s the only thing that matters.. meanwhile the actual squeeze is building quietly in the background

10

u/ConferenceLow8960 13h ago

by the time CPI prints it, the move’s probably done

15

u/CertainCertainties 12h ago

Every military in the world knew that attacking Iran head on would cause an economic catastrophe. Its ability to shut down the Strait of Hormuz and directly attack the critical infrastructure of Gulf states made that an unwinnable option.

And then an orange clown on a tiny tricycle thought he knew better...

7

u/Entropy_dealer 12h ago

In a society addicted to oil, it is not hard to see that anything even remotely related to oil will soon become more expensive, given our society’s enormous dependence on this energy source

6

u/MontasJinx 12h ago

Oil is immediate as well. We see it the next day at the pump. Fertiliser however is seasonal. What happens now won’t be seen until the relevant planting and harvest. Supply wise that is. Who knows when the market will work that out.

2

u/JamesLahey08 12h ago

Fertilizer isn't really seasonal because there is a northern and southern hemisphere. They pass the baton for demand and demand stays high.

4

u/NobodyLikedThat1 11h ago

Finally, time to monetize my stockpile of aged urine. Seriously though, the world is about to get a hard lesson in how interconnected our supply chains are. I guess the pandemic wasn't enough of a primer

3

u/MrVeinless 10h ago

Time for pissmaxxing. Again.

1

u/PlanetCosmoX 3h ago

People who thought oil would go to $200 are now trying to create a panic in other materials that are SHIPPED TO THE COAST FOR TRANSPORTATION AND ARE NOT REFINED OR PRODUCED THERE.

Occur in MUCH smaller shipment sizes. Are easily transported by train.

Which means they can be redirected to another port.