Global Sulfur Crisis Threatens Fertilizer Supplies, Risks Bakken Farm Economy

A global sulfur shortage, exacerbated by the ongoing Iran war, is threatening worldwide fertilizer supplies and could directly impact North Dakota's agricultural economy, a critical concern for Bakken region landowners and communities. According to a report from OilPrice.com, approximately 24 percent of the world's sulfur supply transited the Strait of Hormuz before the conflict, a flow now believed to be near zero after Iran seized control of the vital waterway.

The price of sulfur has surged from approximately $500 per metric ton at the start of the conflict to above $800, with some customers paying over $1,000 for Canadian-origin sulfur in June—a record high. Sulfur is a key raw material for sulfuric acid, which is itself essential for manufacturing phosphate fertilizer. OilPrice.com reports that 42.5 percent of all sulfuric acid is used specifically for phosphate fertilizer production, a nutrient critical to high-yield modern agriculture.

The disruption stems from the closure of the Strait of Hormuz, which has curtailed shipments not only of oil but also of key materials like sulfur, nitrogen fertilizer, and natural gas from Persian Gulf countries. This creates a direct nexus between geopolitical conflict, industrial inputs, and agricultural output. For North Dakota, a major agricultural state where farming and energy production coexist, a sustained fertilizer crisis could depress farm incomes, affecting royalty owners and the local economies that support Bakken oil operations.

The sulfur crisis is part of a broader squeeze on fertilizer components. Natural gas, the primary feedstock for nitrogen fertilizer, is also impacted by the Persian Gulf disruptions. This compound shortage threatens to elevate global food prices and strain the farm economy surrounding the Williston Basin.

While the Bakken formation itself is not a sulfur producer, the region's economic health is deeply tied to agriculture. High fertilizer costs could force farmers to reduce application rates, potentially lowering crop yields and revenues. This financial pressure on agricultural operations could have downstream effects on land leasing, local spending, and the overall economic stability of western North Dakota.