Today’s ESG Updates:
- Oil Prices Jumps 5% on Hormuz Supply Fears: Oil prices jump 5% as fresh attacks on ships in the Strait of Hormuz intensified supply‑disruption fears, overshadowing the International Energy Agency’s record plan to release oil reserves.
- Shell Declares Force Majeure to Clients Who Buy Qatari LNG: Shell has declared force majeure on LNG cargoes from QatarEnergy after a production halt at an LNG facility in Qatar disrupted supplies.
- Strait of Hormuz Closure Impacts Copperbelt’s Sulphur Supply: The closing of the Hormuz Strait threatens the sulphur supply to Copperbelt mines, blocking bulk industrial cargo vessels.
- Irish Farmers Facing “Significant Pressure” on Fertiliser Availability: Irish farmers are facing significant pressure due to tight fertiliser availability, though co-ops are still accepting orders.
Oil prices jumps 5% on Hormuz supply fears
Oil prices jumped about 5% one day after fresh attacks hit three more ships in the Strait of Hormuz, raising fears that around a fifth of the world’s oil supply could stay disrupted for weeks as the Iran war drags on.
Brent crude settled at $91.98 a barrel, up $4.18, while U.S. West Texas Intermediate ended at $87.25, up $3.80, as shipping in the strait has slowed to a near standstill since the U.S. and Israel began striking Iran on February 28.
The International Energy Agency (IEA) proposed releasing a record 400 million barrels from global reserves, more than double the 182 million barrels used after Russia invaded Ukraine. Still, analysts say the amount is too small given the scale of the disruption, with one estimate suggesting it amounts to only about 4 days of global oil production.
Analysts from Macquarie bluntly said, “If that doesn’t sound like much, it isn’t,” and energy consultancy Wood Mackenzie warned the conflict could cut Gulf oil and product flows by roughly 15 million barrels per day, potentially pushing crude toward $150 a barrel if the war continues.
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Further reading: Oil prices jump nearly 5% on supply fears from Strait of Hormuz attacks
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Shell declares force majeure to clients who buy Qatari LNG
Shell has declared force majeure on liquefied natural gas (LNG) cargoes it buys from QatarEnergy and sells to global clients after Qatar halted production at its 77 million tonnes per annum (mtpa) LNG facility and declared its own force majeure on shipments from April.
The move affects Shell’s long-term offtake of around 6.8 mtpa of Qatari LNG, while TotalEnergies has so far not declared force majeure despite receiving notices.
QatarEnergy expects it could take “weeks to months” to restore normal deliveries even if the conflict ends, underlining the disruption to global LNG supply and long‑term contracts.
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Further reading: Shell declares force majeure to clients who buy Qatari LNG: Sources
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Strait of Hormuz closure impacts Copperbelt’s sulphur supply
Sulphur supply to Copperbelt mines is under serious threat as Iran’s closure of the Strait of Hormuz blocks a key route for bulk industrial shipments, with about 50% of global seaborne sulphur trade passing through the strait and 20 million tonnes of Persian Gulf sulphur now caught in the conflict.
The Copperbelt relies on Persian Gulf producers for roughly 90% of its elemental sulphur, mostly shipped to Tanzania and then trucked via the Dar es Salaam Corridor to Zambia and the DRC. However, alternative routes like the Beira, Durban‑led North‑South, and Walvis Bay‑Ndola‑Lubumbashi corridors are also affected.
The disruption also risks wider supply‑chain shocks, including Persian Gulf‑sourced fertilisers that developing countries such as Sudan, Tanzania, Somalia, and Mozambique depend on for a large share of their imports, and the Fertiliser Institute warns that removing Persian Gulf‑origin urea and sulphur from global markets lifts prices and puts pressure on gas‑fed nitrogen‑fertiliser production.
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Further reading: Hormuz closure impacts Copperbelt’s sulphur supply
Irish farmers facing “significant pressure” on fertiliser availability
Just as the Hormuz‑linked shock to the Copperbelt sulphur supply radiates across African fertiliser markets, the same disruption is now tightening supplies for countries like Ireland, where farmers are under “significant pressure” as nitrogen, phosphate, and potassium fertiliser availability tightens and prices rise.
The International Fertiliser Association says global urea prices have jumped by an average of 37% over the past week. It warns that many Middle Eastern producers have cut output or cancelled contracts, while energy‑cost spikes are likely to worsen volatility.
Irish co‑ops say CAN (calcium ammonium nitrate) and compound fertilisers are still available for spring. Still, urea remains “extremely tight,” and all are urging farmers to plan quickly as global supply chains stay fragile.
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Further reading: Irish farmers facing ‘significant pressure’ on fertiliser availability
Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: An oil tanker docked on a Jetty. Cover Photo Credit: Wikimedia Commons
