Middle East Attack Disrupts U.S. Agricultural Producers

Conflict in the Strait of Hormuz sends oil and fertilizer prices soaring, compounding challenges for American farmers

Published on Mar. 10, 2026

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A recent attack by the U.S. and Israel on Iran has disrupted the flow of oil and fertilizer through the critical Strait of Hormuz, sending prices for these commodities spiking upwards. This is adding to the already significant cost pressures facing American agricultural producers, who are now grappling with higher fuel and fertilizer expenses just as spring planting season approaches.

Why it matters

The Middle East is a major supplier of energy and fertilizer globally, and the Strait of Hormuz is a crucial shipping corridor for these products. Disruptions to this supply chain could lead to widespread shortages and further price inflation, severely impacting the profitability of U.S. farms already struggling with rising input costs.

The details

The attack has sent oil prices past $100 per barrel, up from the mid-$60s prior to the conflict. Diesel prices have jumped $0.41 per gallon to $4.16, their highest level since 2023. Fertilizer prices, particularly urea, have also spiked by 30%, rising from $457 per ton to $574. These higher fuel and fertilizer costs will make it more difficult for U.S. farmers to break even, with Kansas State University estimating an additional $25,000-$30,000 in expenses for the average grain farm.

  • The attack occurred in early March 2026.
  • Spring planting season is right around the corner for U.S. farmers.

The players

United States

The U.S. government, along with Israel, carried out the attack on Iran that disrupted energy and fertilizer supplies.

Israel

The U.S. government, along with Israel, carried out the attack on Iran that disrupted energy and fertilizer supplies.

Iran

The target of the attack by the U.S. and Israel, which has disrupted the flow of oil and fertilizer through the Strait of Hormuz.

Strait of Hormuz

A critical shipping corridor between the Persian Gulf and Gulf of Oman, through which about 20% of global oil demand and 25% of globally traded nitrogen fertilizer moves.

Greg Ibendahl

An agricultural economist at Kansas State University who estimates the additional costs the average Kansas grain farm will face due to higher oil prices.

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What they’re saying

“The Strait of Hormuz moves about 20 million barrels of crude oil and other petroleum products each day, which is about 20% of global demand.”

— Russ Quinn, Writer (Progressive Farmer)

“About a quarter of the globally traded nitrogen market moves through the waterway.”

— Russ Quinn, Writer (Progressive Farmer)

“Oil prices at $95/barrel will raise the average Kansas grain farm's costs between $25,000-$30,000.”

— Greg Ibendahl, Agricultural Economist (Kansas State University)

What’s next

The U.S. and its allies are working to reopen the Strait of Hormuz and restore the flow of oil and fertilizer to global markets. However, the longer the conflict lasts, the greater the risk of continued supply disruptions and price volatility for American farmers.

The takeaway

This crisis highlights the vulnerability of U.S. agricultural producers to geopolitical events and supply chain disruptions, especially when it comes to critical inputs like fuel and fertilizer. It underscores the need for greater resilience and diversification in the American food system to withstand such shocks.