Saudi Arabia’s Finance Minister Mohammed al-Jadaan has warned of the significant global impact of the war in the Middle East, suggesting there is more than meets the eye.
Al-Jadaan was quoted by Al Arabiya English as saying that although oil dominated media coverage, it was refined products – including fertilizers, steel and aluminum – that were most affected by the ongoing war.
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“To really understand what’s happening on the ground, you’re going to have to tune out a lot of the media noise,” Al-Jadaan reportedly said while speaking at the FII Priority conference in Miami. The summit is organized by the Future Investment Initiative Institute.
According to him, the risks have not yet been priced in the markets.
The minister said that although economic activities are completely normal in terms of day-to-day activity, “there are of course potential serious impacts on the global economy, not only in the region, but in general we believe that this has not yet been appreciated in the markets”.
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“We really need to make sure that we resolve the conflict very quickly and come together to do it so that the global economy is not affected even more,” al-Jadaan said.
Transport disruptions, rising input costs weigh on fertilizer markets
The US-Israel-Iran conflict has disrupted supplies through the Strait of Hormuz and tightened global supplies of oil and other commodities, including fertilizer.
This has started to affect availability at the local level, which has been pushing up in recent weeks, news agency ANI reported.
India remains the world’s second largest consumer and third largest producer of fertilizers, and the country is particularly exposed to global price movements of natural gas and imported nutrients such as phosphates and potash.
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Dr. Suresh Kumar Chaudhari, CEO of Fertilizers Association of India, told ANI on Thursday that shipping disruptions in West Asia and rising input costs are putting pressure on global fertilizer production and prices.
He added: “Disruptions to shipping routes, particularly through the Strait of Hormuz, and tightening global LNG availability are putting pressure on input costs and supply chains around the world.”
Higher LNG prices directly affect the cost of urea production, while logistical bottlenecks can delay the supply of finished fertilizers and raw materials, increasing uncertainty for both producers and farmers during key agricultural cycles.
“India Handles Impact”
But Chaudhari said India is managing the impact with close coordination between the government and industry and monitoring by empowered groups.
“Ongoing developments in West Asia have brought considerable volatility to global energy and fertilizer markets, given the region’s critical role in supplying both natural gas and key crop nutrients,” Chaudhari said.
Dr Suresh Kumar Chaudhari told ANI that while the challenges are real, “the impact on the fertilizer industry is being carefully managed through close coordination between the industry and the government”.
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He said: “We are in continuous dialogue with the affected ministries and the recent creation of the Empowered Groups reflects a proactive and structured approach to monitoring breaches, securing supplies and addressing emerging risks in a time-bound manner.”
