THE SULFUR MARKET CAUGHT IN THE VICE OF THE STRAIT OF HORMUZ CRISIS

Yves Jégourel

No 2627, Policy briefs on Commodities & Energy from Policy Center for the New South

Abstract: The outbreak of the war in Iran and the closure of the Strait of Hormuz have had major consequences for a large number of global commodity markets. While media attention has understandably focused on oil and natural gas, as well as on aluminum – owing to the strong dependence of that metal’s supply on energy prices – sulfur, like helium, ethylene, propylene, or urea, has also been caught up in the fallout of this conflict. Far from being a marginal commodity, it is essential to the production of nickel and copper, as well as of fertilizers. Qatar, Iran, and Saudi Arabia are among the world’s leading sulfur exporters. Against this difficult backdrop, China has banned exports of sulfuric acid in order to safeguard domestic supply – even though it is the world’s leading supplier – while Russia has sharply restricted its sales to countries outside the Eurasian Economic Union since November 1, 2025. Combined with the closure of the Strait of Hormuz, these measures have led to a near-doubling of sulfur and acid prices. If the conflict continues, a shortage could have serious consequences worldwide, particularly for food security. As the world’s largest exporter of phosphate fertilizers and, consequently, heavily dependent on this input, Morocco appears directly exposed, despite a diversification of its sulfur imports toward Kazakhstan and a firm strategy of securing/producing the resource domestically across the various stages of the value chain.

Date: 2026-09
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