Fertilizers CF, Nutrien, Mosaic rise as urea prices climb on Middle East conflict

U.S. fertilizer stocks jump in early morning trading as urea price climbs amid widening Middle East conflict

CF Industries CF.N climbs 6.5%, Mosaic MOS.N rises 3.1% and U.S.-listed shares of Nutrien NTR.N up 2.4%

The companies produce nitrogen-based fertilizers like urea, whose prices have soared as the U.S.-Israeli air war against Iran disrupts shipping through the vital Strait of Hormuz

Higher urea prices typically support margins for producers

Commodity price reporting agency Argus Media says urea prices surged as the Middle East conflict threatens to choke supply from a region that accounts for around 35% of global seaborne urea trade

In the past 12 months, CF is up nearly 25%, NTR gains 43% and MOS rises 11%