The US and Israeli military actions against Iran and the escalation in the Middle East have led to a rise in prices not only for oil and gas but also for many other commodities vital to the global economy, including sugar, fertilizer, aluminum and helium, The New York Times (NYT) reported.
The price of urea (a type of nitrogen fertilizer, nearly a third of which passes through the Strait of Hormuz) has increased by 35% since the start of the conflict. Due to the effective closure of the strait, countries in the region have also been unable to export sulfur, which is essential for fertilizer production and is used in many other industries. “The loss of fertilizers could seriously affect global agriculture, leading to higher food prices,“ the newspaper quoted an expert as saying.
The conflict has also affected sugar prices. Brazil, the world's largest sugarcane producer, produces sugar and ethanol, which is used as fuel. Rising global oil prices are driving up the price of ethanol, forcing Brazilian refineries to shift their focus from sugar production to ethanol.
Prices for aluminum, which is smelted in Qatar and Bahrain, hit their highest level in nearly four years earlier this week as the raw material for smelting is imported into the region via the Strait of Hormuz. Qatar produces about a third of the helium needed for the semiconductor industry, and its production is concentrated in the city of Ras Laffan, where the strikes have disrupted operations.