The Digester

Iran's actions in the Strait of Hormuz have pushed fertiliser prices higher and reopened 2022-style supply risks, while 12 EU countries are seeking an emergency exemption from the EU carbon border tax on fertilisers, a move critics say would weaken long-term resilience and clean-investment signals.

About one third of global fertiliser exports transit the Strait of Hormuz.
Iran's disruption of the route has driven short-term spikes in urea and other fertiliser prices.
Energy price volatility and unstable trade routes are the main drivers of current price rises, not EU carbon policy.
Twelve European countries have asked the Commission to use Article 27a to exempt fertilisers from the Carbon Border Adjustment Mechanism.
Independent estimates put CBAM's impact on urea at about €1.40 to €1.79 per tonne.
The European Commission and some fertiliser producers warn that suspending CBAM would reduce investment in low-carbon fertiliser and prolong fossil-fuel dependence.
Trials across 78 farms in 14 countries show regenerative practices can cut synthetic fertiliser use by about 61 percent with minimal yield loss.

Iran's disruption of Hormuz exposes Europe’s dependence on fossil-fuel fertilisers

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