This Is Why Why your food shop is about to cost more
Mar 30, 2026
Paul Kelso, Sky News business correspondent with on-site reporting in farming and fertiliser markets, explains how the Iran conflict is driving up energy and synthetic fertiliser costs. He explores supply disruption through the Strait of Hormuz. He discusses shifts in import sources, pressures on greenhouse and livestock producers, and the likely knock-on rise in supermarket prices.
AI Snips
Chapters
Transcript
Episode notes
Fertiliser Is An Energy Product
- Synthetic nitrogen fertiliser is essentially an energy product made from natural gas via ammonia production.
- Paul Kelso explains producers extract hydrogen from methane and combine it with air nitrogen to create ammonia, so gas price spikes raise fertiliser costs.
Gulf Blockade Cuts Global Nitrogen Supply
- The Strait of Hormuz disruption and attacks on Gulf gas infrastructure have removed a large share of global nitrogen supply.
- Paul Kelso notes between a quarter and a third of global nitrogen trade comes from the Gulf and that trade is not moving right now.
Urea Prices Have Doubled This Year
- Urea prices have more than doubled since the start of the year, reflecting the energy-driven shortage.
- Paul Kelso cites urea rising from about $300/ton to nearly $700/ton as the month closes.