2026 Strait of Hormuz crisis
Industry: Copyedit
| ← Previous revision | Revision as of 09:18, 21 April 2026 | ||
| Line 438: | Line 438: | ||
====Industry==== |
====Industry==== |
||
The US defense industry is affected by "near total" disruption of critical minerals supply, in particular [[sulfur]], through the strait.{{cite web|url=https://www.theguardian.com/world/2026/mar/19/west-point-analysis-iran-war-costs|title=West Point analysis warns that strait of Hormuz blockade will strangle US defense industry|work=The Guardian|first=Jason|last=Wilson|date=19 March 2026|access-date=22 March 2026}} In face of sulfuric acid scarcity China has banned exports impacting among other things [[Copper mining in Chile|copper production in Chile]] which imported sulfuric acid as consumable.{{Cite news |title=Ácido sulfúrico: China frenará exportaciones y presiona al cobre chileno en plena crisis global |last=Recabarren Ortiz |first=Cristian |date=2026-04-12 |url=https://www.redimin.cl/acido-sulfurico-china-frenara-exportaciones-y-presiona-al-cobre-chileno-en-plena-crisis-global/ |access-date=2026-04-15 |work=Redimin |language=es}} [[Aluminum]] prices experienced a slight increase, as the Gulf states account of 20% of raw aluminum exports and 8% of aluminum production. Roughly one-third of the world's [[helium]] production is impacted by the crisis, due to both the disruption of natural gas production in Qatar and the very time-sensitve nature of helium transportation. Helium distributors are rationing deliveries as of early April.{{Cite web |first=Avery |last=Lotz |title=Iran war deflates critical helium production supplies |date=7 April 2026 |access-date=7 April 2026 |work=Axios |url=https://www.axios.com/2026/04/07/iran-war-qatar-helium-production }} |
The US defense industry is affected by "near total" disruption of critical minerals supply, in particular [[sulfur]], through the strait.{{cite web|url=https://www.theguardian.com/world/2026/mar/19/west-point-analysis-iran-war-costs|title=West Point analysis warns that strait of Hormuz blockade will strangle US defense industry|work=The Guardian|first=Jason|last=Wilson|date=19 March 2026|access-date=22 March 2026}} In face of sulfuric acid scarcity, China has banned exports impacting among other things [[Copper mining in Chile|copper production in Chile]] which imported sulfuric acid as consumable.{{Cite news |title=Ácido sulfúrico: China frenará exportaciones y presiona al cobre chileno en plena crisis global |last=Recabarren Ortiz |first=Cristian |date=2026-04-12 |url=https://www.redimin.cl/acido-sulfurico-china-frenara-exportaciones-y-presiona-al-cobre-chileno-en-plena-crisis-global/ |access-date=2026-04-15 |work=Redimin |language=es}} [[Aluminum]] prices experienced a slight increase, as the Gulf states account of 20% of raw aluminum exports and 8% of aluminum production. Roughly one-third of the world's [[helium]] production is impacted by the crisis, due to both the disruption of natural gas production in Qatar and the very time-sensitve nature of helium transportation. Helium distributors are rationing deliveries as of early April.{{Cite web |first=Avery |last=Lotz |title=Iran war deflates critical helium production supplies |date=7 April 2026 |access-date=7 April 2026 |work=Axios |url=https://www.axios.com/2026/04/07/iran-war-qatar-helium-production }} |
||
The Gulf region also produces nearly half of the world's [[urea]] and 30% of [[ammonia]], with about one-third of the world's [[fertilizer]] passing through the strait. Urea prices increased by 50% since the start of the war, as of late March 2026, while other fertilizer prices, such as [[diammonium phosphate]], also rose. The LNG disruption is also a problem for the production of fertilizer, impacting the agriculture industry in the Northern Hemisphere. The price shock and the shortage of fertilizer during the spring planting season could reduce the planting and yields of corn in the US—the main feed stock for US beef, poultry, and dairy—and potentially increase global food prices into 2027.{{Cite web |first1=Eduardo |last1=Gomez Horta |first2=Amin |last2=Mohseni-Cheraghlou|title=The Iran war's economic fallout won't stop at oil—agriculture and aluminum are next |work=Atlantic Council |date=27 March 2026 |access-date=27 March 2026 |url=https://www.atlanticcouncil.org/blogs/econographics/the-iran-wars-economic-fallout-wont-stop-at-oil-agriculture-and-aluminum-are-next/ }} Unlike oil, the fertilizer sector does not have internationally coordinated strategic reserves, making supply disruptions more difficult to manage. It is estimated that global fertilizer prices could average 15–20% higher during the first half of 2026 if the crisis continues. |
The Gulf region also produces nearly half of the world's [[urea]] and 30% of [[ammonia]], with about one-third of the world's [[fertilizer]] passing through the strait. Urea prices increased by 50% since the start of the war, as of late March 2026, while other fertilizer prices, such as [[diammonium phosphate]], also rose. The LNG disruption is also a problem for the production of fertilizer, impacting the agriculture industry in the Northern Hemisphere. The price shock and the shortage of fertilizer during the spring planting season could reduce the planting and yields of corn in the US—the main feed stock for US beef, poultry, and dairy—and potentially increase global food prices into 2027.{{Cite web |first1=Eduardo |last1=Gomez Horta |first2=Amin |last2=Mohseni-Cheraghlou|title=The Iran war's economic fallout won't stop at oil—agriculture and aluminum are next |work=Atlantic Council |date=27 March 2026 |access-date=27 March 2026 |url=https://www.atlanticcouncil.org/blogs/econographics/the-iran-wars-economic-fallout-wont-stop-at-oil-agriculture-and-aluminum-are-next/ }} Unlike oil, the fertilizer sector does not have internationally coordinated strategic reserves, making supply disruptions more difficult to manage. It is estimated that global fertilizer prices could average 15–20% higher during the first half of 2026 if the crisis continues. |
||
