Middle East Conflict Disrupts Hydrogen-Based Fertiliser and Chemical Supply Chains

The Middle East plays a critical role in global markets for hydrogen-based products, and a large share of its production is dedicated to exports, making the region a major player in global trade of these products. Disruptions to the Strait of Hormuz – which most exports from the region pass through – have constrained supply and driven up prices. Urea prices doubled between January and April 2026, and methanol prices also increased substantially.

Production has been curtailed both inside and outside the region due to supply shortages and higher gas prices, with several fertiliser plants suspending production or reducing their operations. These disruptions risk affecting agricultural output, as reduced fertiliser use can significantly lower crop yields, potentially affecting the food supply chain.

The International Energy Agency's (IAE) Global Hydrogen Review 2026 provides an update on hydrogen production and demand worldwide and identifies the latest developments relating to policy, infrastructure, trade, investments and innovation. Read the full report here: Global Hydrogen Review 2026 – Analysis - IEA