New york: The price of urea rose by 0.25% on Tuesday, surpassing the $600 mark for the first time since 2022. This increase comes in the wake of the closure of the Hormuz Strait, a crucial transit point for global trade.

According to Anadolu Agency, urea prices reached $601 per ton as of 1230GMT, marking a 34.5% increase on a monthly basis and a rise of over 55.5% since the beginning of the year. The Hormuz region is significant for the transit of key fertilizer components, with approximately 44% of sulfur, 31% of urea, 18% of ammonia, and 15% of phosphates passing through it.

The Strait of Hormuz is a vital transit route for the energy sector, with about 20 million barrels of oil transported through the waterway daily. The closure was announced by Iran's Islamic Revolutionary Guard Corps following the commencement of US-Israeli attacks on Iran on February 28.

Amid these developments, efforts to address the rising urea prices have been made. Last week, the US agriculture secretary indicated plans to lower urea prices. Additionally, on Tuesday, White House National Economic Council Director Kevin Hassett stated on CNBC that while the US can mitigate the issue, it cannot completely resolve it.