Oil and Fertilizer Prices May Soon Have Ripple Effects on These 3 Commodities Stocks

The ongoing Strait of Hormuz blockade has already translated into higher state prices crossed the country, and those prices should proceed to ascent if a speedy solution isn't achieved. Higher lipid prices besides summation the outgo of different commodities, similar fertilizer.

Fertilizer accumulation requires a batch of earthy gas, the terms of which goes up successful tandem with oil. The blockade had near much than 1 cardinal tons of fertilizer stuck successful the Gulf, according to a March 13 report, and farmers are already being deed by a shortage.

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Here are 3 stocks to ticker arsenic the struggle successful the Middle East continues.

CF Industries (NYSE: CF) is simply a starring shaper of hydrogen and nitrogen products, 2 captious components that spell into producing fertilizer. Its web is chiefly located successful North America, and the institution notes that "our structural advantages are rooted successful our North American operations. This gives nonstop entree to low-cost earthy state and strategically positions our cognition adjacent extremity users."

The institution was increasing earlier the blockade, with $1.46 cardinal successful nett net past twelvemonth compared to $1.22 cardinal successful 2024. Net income were up by 19.2% twelvemonth implicit twelvemonth for the entirety of 2025.

In 2025, the institution noted that it was capable to boost income "due to beardown planetary nitrogen request and proviso disruptions from geopolitical issues and earthy state availability." And that was earlier the existent Iran warfare started.

CF Industries besides bought backmost $1.34 cardinal worthy of shares past year, reducing its outstanding stock number by astir 10% compared to its stock number astatine the extremity of 2024. This gives each remaining stock assertion to a larger information of the company.

While the existent blockade is affecting fertilizer, it doesn't impact CF Industries arsenic the institution does not root inputs via the Strait of Hormuz. It enjoys pricing powerfulness without having to dilatory down production, and the institution could besides service arsenic a viable replacement for competitors that trust connected the Strait of Hormuz for their logistics.

ExxonMobil (NYSE: XOM) is 1 of the astir iconic lipid stocks, and it stands to payment from rising state prices. It's the largest publically traded U.S. lipid and state institution by marketplace cap, and it's lone edged retired by a fewer government- and state-owned entities similar Saudi Aramco.