Gulf Disruption Chokes Sulphur Flows, Supporting Swaths of Global Industry
The recent Gulf disruption has resulted in a significant surge in sulphur prices, affecting various industries worldwide. The fertiliser industry is expected to be the most impacted, with potential revenue losses of approximately $50-60 billion. Other affected industries include nickel, copper, battery-materials, rubber, petrochemicals, pharmaceuticals, and water-treatment.
Industries Affected and Estimated Revenue Losses
- Fertiliser: $50-60 billion
- Nickel: $5-10 billion
- Copper: $5-10 billion
- Battery-materials: $3-6 billion
- Rubber: $3-5 billion
- Petrochemicals: $6-12 billion
- Pharmaceuticals: $14 billion
- Water-treatment: $1-2 billion
Key Dates and Events Triggering the Shortage
- 28 Feb 2026: U.S. and Israel launch strikes on Iran; IRGC bans commercial traffic through the Strait of Hormuz.
- 1-8 Mar 2026: Strait of Hormuz effectively shut; 20 mn bbl/d of crude and all sulphur cargoes stalled.
- Early Mar 2026: Spot sulphur price in Dar es Salaam $615-630 / t (up $20-30 / t in a week).
Representative Quotes
- ‘Everyone thinks this is about oil, but this is about what oil becomes.’ – Blas
- ‘Sulphur prices surged 207% from $173 to $531.50 per tonne between January 2025-2026.’ – LinkedIn industry-track post
- ‘Sulphur accounts for about half the cost of running a high-pressure acid leaching (HPAL) plant; without alternatives, plants could be forced to cut production by next month.’ – Marco Martins, Project Blue analyst
Sources
- IntelliNews – ‘Iran war sulphur-shortage will have a world-wide impact’
- Reuters – ‘Gulf disruption squeezes Indonesia nickel makers’ sulphur supply’ (6 Mar 2026)
- Beroe – ‘The Looming Sulfur Shortage and Global Supply Risks’ (2 Mar 2026)
- Argus Media – ‘Sulphur chokepoint threatens battery metals’ (3 Mar 2026)
- LinkedIn post – ‘Sulphur Prices’ (2 Mar 2026)