German Chancellor Friedrich Merz stated, “Tehran must return to the negotiating table and stop holding the region and the world hostage: The blockade of the Strait of Hormuz must end.” This urgent call comes as rising fertilizer and energy prices due to the Iran war are straining farmers in major food-exporting countries like Argentina and Brazil.
The situation escalated when Iran launched missile and drone attacks on the United Arab Emirates, resulting in the interception of 12 ballistic missiles, 3 cruise missiles, and 4 drones by UAE air defenses. These aggressive actions have disrupted the flow of goods through the critical Strait of Hormuz, a vital route for global oil and gas supplies.
That context matters because it directly correlates with rising costs. Fertilizer prices have surged as energy prices climb, creating a ripple effect that impacts food production. Argentina and Brazil are particularly vulnerable; together, they account for 10% of global wheat exports, 39% of maize, and an impressive 66% of soybean exports.
The international community has reacted strongly. British Prime Minister Keir Starmer condemned the Iranian strikes targeting civilian infrastructure in the UAE, labeling them as unjustified. Similarly, French President Emmanuel Macron expressed that these actions are unacceptable.
The UAE Defense Ministry’s report on intercepting Iranian attacks highlights a tense atmosphere in a region already fraught with geopolitical challenges. This situation has prompted calls for renewed negotiations—Germany’s Chancellor urged Iran to cease its aggressive tactics.
As farmers in Argentina and Brazil face escalating costs, their ability to maintain food supply stability becomes increasingly precarious. If this conflict continues without resolution, global food security could be significantly threatened.
In early April 2026, a ceasefire was announced after Iran agreed to halt its drone and missile strikes on Gulf countries. However, no timeline has been shared for comprehensive negotiations regarding the Strait of Hormuz blockade.
The fallout from these events is still unfolding, but one thing is clear: The impact on fertilizer and energy prices will continue to resonate across agricultural sectors worldwide.