Gasoline prices in the United States have soared to nearly $4 a gallon since the start of the U.S.-Israel war on Iran, stoking consumer fears as the attacks prompted the closure of a critical maritime passage for oil delivery.
Yet the Strait of Hormuz facilitates transport for an array of supplies beyond oil, threatening to also drive up prices for products ranging from groceries to smartphones, some supply-chain analysts told ABC News.
Potential shortages of raw materials like fertilizer and helium could compound price hikes tied to the shortfall of oil, they added, risking a supply shock that could hammer consumers for months.
“The big concern is that petrochemicals are the foundation for a huge range of things we take for granted in everyday life. They have consequences for the entire supply chain,” Raymond Robertson, professor for trade, economics and public policy at Texas A&M University, told ABC News.
Oil prices plunged on Monday after President Donald Trump claimed “productive conversations” had been held between the United States and Iran. Still, the global price of oil stood at about $100 a barrel, which marked a steep rise from pre-war levels.
In an effort to lower oil prices, the Trump administration has announced a release from the strategic oil reserve, eased sanctions on Russian oil and suspended a key regulation of domestic oil transport. The president has also sought to restore tanker traffic in the Strait of Hormuz.
Here’s what to know about which products other than oil depend on the Strait, and what they could mean for prices.
Fertilizer
Roughly one-third of global seaborne trade in fertilizer passes through the Strait of Hormuz, though some types depend on the route far more than others, according to the United Nations Conference on Trade and Development (UNCTD).
The strait accounts for as much as two-thirds of worldwide seaborne trade in urea, a nitrogen-rich fertilizer used for a variety of crops like wheat and leafy greens, UNCTD found.
