By Nate Wolf
Chemical stocks CF Industries, Dow, and Mosaic were the top three performers in the S&P 500 on Thursday, lifted by the Iran war.
As much as a third of the world's fertilizer supply passes through the now-closed Strait of Hormuz, a primary conduit in the Middle East for all kinds of commodities -- foremost among them oil. Many countries in the region produce those chemicals.
The war has already driven up the prices of components, such as nitrogen, ammonia, and urea. Consequently, chemicals stocks have gained.
CF Industries, a major distributor of nitrogen fertilizer, jumped 11% on Thursday and is now up 33% since the U.S. and Israel attacked Iran on Feb. 28. Dow was up 6.8% and 19% in March. Mosaic, which is focused on phosphate fertilizers, climbed 6.2%. The stock is up five of the last six days and 12% this month.
The U.S. typically receives from 25% to 40% of its annual fertilizer imports from March to May, according to analysts at UBS. Some March imports are in transit, so the impact on spring supply and prices is "likely somewhat overstated," the firm said.
Nitrogen and urea, a nitrogen derivative, will be most affected in the U.S., since 40% to 45% of urea arrives between March and May each year. That may explain why CF Industries has been the big winner so far.
Write to Nate Wolf at nate.wolf@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 12, 2026 11:01 ET (15:01 GMT)
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