Iran-US war impacted ‘fertilisers, steel and aluminum’ the most, says Saudi Arabia Finance Minister

Saudi Arabia’s Finance Minister Mohammed al-Jadaan warned of a significant global impact of the war in the Middle East, suggesting there's more than what meets the eye.

Al-Jadaan was quoted by Al Arabiya English as saying that while oil has dominated media coverage, it is refined products – including fertilisers, steel and aluminum – that have been most affected due to the ongoing war.

“You will need to mute a lot of the media noise for you to really understand what’s happening on the ground,” Al-Jadaan reportedly said while speaking at the FII Priority conference in Miami. The summit is hosted by the Future Investment Initiative Institute.

He said the risks have not yet been priced into the markets.

The minister was quoted as saying that despite economic activities being quite normal in terms of day-to-day activity, “obviously there are potential serious impacts on the global economy, not only in the region, but generally that we really believe that has not yet been priced in the markets."

“We really need to make sure that we resolve the conflict very quickly and come together to do that for the global economy not to be impacted even more," al-Jadaan said.

Shipping disruptions, rising input costs strain fertiliser markets

The conflict between the US-Israel and Iran has disrupted shipments through the Strait of Hormuz and tightened global supplies of crude oil and other commodities, including fertilisers.

This has begun to impact availability at the grassroots level, pushing up prices in recent weeks, news agency ANI reported.

India remains the second-largest consumer and third-largest producer of fertilisers globally, and the country is particularly exposed to global price movements in natural gas and imported nutrients such as phosphates and potash.

Dr. Suresh Kumar Chaudhari, Director General of the Fertiliser Association of India, told ANI on Thursday that shipping disruptions in West Asia and rising input costs are adding pressure to global fertiliser production and pricing.

He added, "Disruptions in shipping routes, particularly through the Strait of Hormuz, and tightening global LNG availability are exerting pressure on input costs and supply chains worldwide."

Higher LNG prices directly affect urea production costs, while logistical bottlenecks can delay shipments of finished fertilisers and raw materials, adding uncertainty for both producers and farmers during key agricultural cycles.

'India is managing the impact'

Chaudhari, however, said India is managing the impact through close government-industry coordination and monitoring by empowered groups.

"The ongoing developments in West Asia have introduced significant volatility in global energy and fertiliser 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 these challenges are real, "the impact on the fertiliser sector is being carefully managed through close coordination between the industry and the government."

He said, "We are in continuous dialogue with concerned ministries, and the recent constitution of Empowered Groups reflects a proactive and structured approach to monitor disruptions, secure supplies, and address emerging risks in a time-bound manner."