Australia's agricultural sector is facing a critical fertiliser shortage due to global supply chain disruptions, particularly from the Strait of Hormuz, which has been affected by geopolitical tensions. The country relies heavily on imports for its fertiliser needs, with 90% of nitrogen fertilisers and 100% of potash products sourced from abroad. The price of urea, which constitutes about two-thirds of nitrogen applied by farmers, has nearly doubled since the onset of the Iran conflict, leading to increased production costs for farmers. As a result, agricultural producers are facing tough decisions about planting, with some smaller farmers likely to reduce their operations due to the high costs. A worst-case scenario could see wheat production drop by 25% if fertiliser use is significantly curtailed. However, the Australian government is working to secure additional supplies, including 250,000 tonnes of urea from Indonesia, which could alleviate some pressure. Looking ahead, a new urea project in Western Australia is expected to enhance local production and reduce reliance on imports by 2027.