Strait of Hormuz shipping drops again as U.S.-Iran clashes reignite

Strait of Hormuz shipping fell further after fresh clashes between U.S. and Iranian forces over the weekend of July 11 and 12, Argus Media reported, extending a disruption that has already redrawn global fertilizer trade routes.

Iran’s Islamic Revolutionary Guard Corps said its aerospace arm had struck logistics support centers and refueling platforms linked to U.S. aircraft carriers at Duqm port in Oman, according to a statement carried by the Sepah news agency early on Sunday. Duqm sits a considerable distance from the strait and was hit in the early days of the war, though it had been less affected since. Oman’s state news agency also reported drone strikes across Musandam, the country’s northernmost governorate, which flanks the strait. Oman condemned the attacks.

The renewed fighting follows the collapse of the U.S.-Iran interim agreement, which Fertilizer Daily reported on July 9 as a renewed threat to Hormuz shipments. Roughly one-third of seaborne fertilizer trade and a large share of global sulfur and ammonia volumes normally move through the waterway.

For fertilizer buyers, the immediate read is on raw materials rather than finished product. Sulfur and ammonia flows out of the Middle East have been the binding constraint on phosphate production since the strait closed, and each interruption in Strait of Hormuz shipping pushes the cost of replacement tonnes higher. Saudi Arabian DAP and MAP cargoes have spent months waiting in the Mideast Gulf. Buyers watching for a durable reopening now have a further reason to price in delay through the third quarter.

Source: Argus Media