Middle East Tensions Drive Agricultural Price Surge

(MENAFN) Agriculture and food manufacturing are facing significant strain due to geopolitical instability in the Middle East and a drop in tanker movement through the Strait of Hormuz. Over the past month, increasing energy expenses have added further pressure, sparking upward shifts in prices across essential commodity markets that sustain the global food system.

After the beginning of US and Israeli strikes on Iran on Feb. 28, followed by Tehran’s counterattacks, regional tensions escalated, intensifying stress on worldwide energy, food, and commodity markets. The continuing conflict has disrupted supply chains, complicating the steady flow of goods.

Heightened security concerns surrounding the crucial maritime route after the attacks triggered another surge in global agricultural prices. This increase has been driven by rising costs in energy, fertilizers, and transportation, all of which have been climbing steadily.
Farmers have been encouraged to modify their planting decisions in response to these changes, leading to a transformation in crop rotation strategies.

It is not only supply-related worries that have influenced agriculture so strongly; the broad effects of escalating energy and shipping expenses have impacted the entire agricultural production system.

Elevated costs of nitrogen-based fertilizers may hasten a transition toward crops such as soybeans, which require less fertilizer, instead of crops like corn and wheat. Analysts anticipate a reduction in corn cultivation areas in the US, alongside an increase in soybean planting.

The S&P GSCI Agriculture global benchmark index (SPGSAG), which tracks real-time price changes in agricultural markets, has climbed by approximately 4.1% since the conflict began.

MENAFN01042026000045017167ID1110929936