Hormuz Closure Drives Up Costs for Canadian Farmers

The closure of the Strait of Hormuz has triggered a surge in oil, diesel, and fertilizer prices following the collapse of a June 17 interim peace deal between the United States and Iran. This economic volatility renews pressures on farmers in Southwestern Ontario as they prepare for fall wheat and canola planting.

Agricultural producers report input costs have risen by as much as 50%. These increases, coupled with low global prices for corn and soybeans, threaten the ability of farmers to service debt and maintain profit margins. The current instability follows a broader conflict that escalated in February 2026, when the United States and Israel launched airstrikes on Iran.

Industry representatives warn that the situation mirrors previous economic shocks. Economists suggest that if instability in the Strait of Hormuz persists, it could disrupt global grain supplies and drive up food prices through the fall of 2027.