New Delhi, March 27 -- A disruption in the Strait of Hormuz could significantly tighten global agricultural markets by constraining fertilizer flows and pushing up production costs, according to a recent Goldman Sachs Commodity Analyst report.

The note highlights the strategic importance of the chokepoint, stating that "the Strait of Hormuz is a critical route in the global nitrogen fertilizer market, which accounts for 60% of global fertilizer use and is especially important for crops like corn and other grains." Any sustained disruption, therefore, has immediate implications for both input costs and food supply chains.

The report notes that supply shocks are already materialising. "Since the onset of the conflict, nitrogen fertilizer ...