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Current Affairs

Could ultra-precise harvest forecast give China an advantage in Iran war fallout?

As tensions around Iran intensify, a potential disruption to global fertiliser supply chains is raising concerns about food production worldwide.
But for China, an unusual advantage…

By Samantha Johnson / March 22, 2026

But for China, an unusual advantage is coming into focus: the ability to predict grain output more than six months in advance with striking accuracy.

That capability – refined over decades – could allow Beijing to move early, reshaping risk into strategic leverage.

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The Strait of Hormuz, a vital artery for global energy and commodity flows, has emerged as a key vulnerability. Roughly a third of global urea exports pass through the corridor, linking fertiliser markets directly to geopolitical stability.

Urea production depends heavily on natural gas, meaning any sustained disruption to energy supplies or shipping routes can quickly drive up fertiliser costs. For farmers, higher input prices often translate into reduced application rates – and ultimately lower yields.

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The impact is already being felt across Asia. India, which imports a large share of its fertilisers from the Middle East, faces mounting pressure ahead of its planting season. Indonesia, reliant on Gulf sulphur for phosphate fertilisers, is also exposed.

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