The global supply of sulfur has tightened significantly following the closure of the Strait of Hormuz, driving prices to 600 dollars per metric ton. This represents a 40 percent increase since mid-February, according to data released on Thursday, April 23, 2026. The disruption stems from the ongoing conflict involving Iran, which has severely restricted the movement of oil and gas tankers through one of the world's most critical maritime chokepoints.
Sulfur is primarily produced as a byproduct of oil and gas refining. With shipments from the Middle East curtailed, the global market is facing a severe deficit. HSBC economists Paul Bloxham and Jamie Culling highlighted the crisis in a report issued on Thursday, noting that the Middle East accounts for approximately 25 percent of global sulfur production and nearly 50 percent of the global seaborne sulfur trade. The economists stated that while rising oil prices have dominated headlines, the cascading effects on the sulfur market present a distinct threat to multiple industrial sectors.
The shortage is having an immediate impact on the agricultural sector, where sulfur is a key component in the production of phosphate fertilizers. Industry analysts report that the increased cost of raw materials is likely to translate into higher food prices globally as farmers face rising input costs. Beyond agriculture, sulfur and its derivative, sulfuric acid, are essential for the extraction and processing of metals. The production of copper and nickel, both vital for the global energy transition, has seen costs escalate. Additionally, the semiconductor industry, which relies on high-purity sulfuric acid for cleaning silicon wafers, is monitoring the supply squeeze.
National governments are beginning to implement protectionist measures in response to the shortage. China, a major producer of sulfuric acid, is reportedly planning to restrict exports of the chemical starting May 1. This move is expected to further tighten supply for international buyers, particularly in metals-heavy economies like Indonesia and Chile. In Indonesia, nickel smelting operations are heavily dependent on imported sulfur, while Chile’s copper mining industry requires steady supplies of sulfuric acid for leaching processes.
The current bottleneck at the Strait of Hormuz has exposed the fragility of a supply chain that relies on fossil fuel extraction for essential industrial chemicals. As of April 23, 2026, the timeline for reopening the strait remains uncertain, leaving industries to contend with the highest sulfur prices recorded in recent years.