Sri Lanka, March 9 -- The war in Iran could have grave consequences for food production around the world because the Middle East is home to some of the world's largest fertilizer plants, as well as a major producer of the raw materials necessary to make fertilizer.

According to Morningstar, around 25-35% of global trade in those raw materials passes through the Strait of Hormuz, the narrow waterway flanked by Iran on one side and which is effectively closed to ships. Iran is also the fourth-largest global exporter of urea, a widely used fertilizer, after Russia, Egypt and Saudi Arabia, with Saudi exports also affected by the strait's closure.

Egyptian urea prices, an industry benchmark, have shot up by more than a third since the start ...