The Perfect Storm: Hormuz Closes, Fertilizer Spikes 77%, SNAP Shrinks, and Food Banks Are Already at Capacity

Strait of Hormuz closure drives urea prices up 77% as US farmers enter planting season, SNAP feeds 4 million fewer people, and food banks hit record demand nationwide.

The Perfect Storm: Hormuz Closes, Fertilizer Spikes 77%, SNAP Shrinks, and Food Banks Are Already at Capacity Strait of Hormuz closure drives urea prices up 77% as US farmers enter planting season, SNAP feeds 4 million fewer people, and food banks hit record demand nationwide. March 13, 2026 Key Takeaways: The closure of the Strait of Hormuz has driven urea fertilizer prices up 77% since mid-December, from the equivalent of 75 bushels of corn per ton to 126 bushels, just as US farmers enter spring planting season. One-third of global seaborne fertilizer passes through the Strait of Hormuz, and the disruption is projected to add roughly 2 percentage points to US food-at-home inflation on top of energy-driven increases. This fertilizer shock is arriving simultaneously with $187 billion in SNAP cuts, record food bank demand, and the elimination of the only federal survey tracking food insecurity. The Strait of Hormuz is closed. One-fifth of the world's oil passes through it. So does one-third of global seaborne fertilizer , including nearly half the world's urea and 30% of its ammonia. Following US-Israeli strikes on Iran on February 28, Iran shut the strait. Commercial shipping has effectively stopped. Sea mines have been deployed. Three commercial vessels were struck this week. The immediate impact hit oil. Brent crude is above $100. But the fertilizer shock may be worse. The Numbers Hitting American Farms Right Now Urea prices at the New Orleans import hub jumped 32% in one week, from $516 per metric ton on February 27 to $683 on March 5. Since mid-December, urea prices have surged 77% . In December, one ton of urea cost US farmers the equivalent of 75 bushels of corn. This week, the same ton costs 126 bushels. This is happening during spring planting season, wh