Global economic impact of the Strait of Hormuz closure

The closure of the Strait of Hormuz, attributed to tensions with Iran, is disrupting global supply chains beyond the energy sector. Approximately one-third of the global supply of helium and fertilizer passes through this maritime route. Specifically, nearly 50% of the global urea supply and one-third of ammonia pass through the strait, according to the American Farm Bureau Federation. As cargo ships accumulate on both sides of the strait, prices for these commodities have begun to rise, affecting industries such as semiconductor manufacturing, medical imaging, gardening, and party supplies. Rich Gottwald, CEO of the Compressed Gas Association, warned that the situation will worsen the longer the closure continues. These supply chain disruptions occur as agricultural producers prepare for spring planting. Meanwhile, the Trump administration and Republican officials have expressed concerns that these inflationary pressures could affect the cost of living and political outcomes in November.