Strait of Hormuz Tensions Jolt Ag Trade

Grain and oilseed markets opened sharply higher Sunday night after crude oil surged nearly 12 percent amid escalating conflict involving the U.S., Israel and Iran. Brent crude briefly spiked as traffic through the Strait of Hormuz, which handles about 20 percent of global oil shipments and a significant share of fertilizer trade, slowed to a near halt. In agricultural trade, soybean oil and hard red winter wheat led the rally, supported by higher energy prices. After the initial market reaction, energy, gold and grain futures settled down. The fertilizer sector is also watching closely. An estimated 25 to 35 percent of globally traded ammonia and urea moves through the Strait of Hormuz. Any prolonged disruption could tighten global supplies and lift prices, especially as spring application season ramps up.