Other energy markets are affected, too. Qatar, which supplies about 20 percent of the world’s liquefied natural gas, halted LNG production after a drone attack. Production there will take weeks to restart.
As a result, downstream firms that require LNG to operate are closing shop, too. For example, the Gulf region is responsible for nearly a tenth of the global aluminum supply. Already this week, multiple major aluminum smelters had to initiate shutdowns; one company says it may take up to a year to restart production.
Production of methanol and other chemicals has also been disrupted. Same with fertilizers used to grow the world’s food supply: Roughly 35 percent of global exports of urea (the most common nitrogen fertilizer) and 45 percent of global exports of sulfur (used to produce phosphate fertilizers) traversed the Strait of Hormuz. Fertilizer prices are already spiking, and American farmers are freaking out. Consumers may see “higher prices for bread within six to 10 weeks, eggs within a few months and pork and broiler chicken within six months,” according to an estimate from food-system expert Raj Patel.