Oil prices rose more than 2 per cent in early Monday trading after Israel ordered troops deeper into southern Lebanon, raising fears of a broader regional conflict and potential disruptions to energy supplies. US crude climbed to $89.53 a barrel, while Brent crude rose to $93.05. The escalation dampened hopes for a near-term extension of the US-Iran ceasefire and renewed concerns over the Strait of Hormuz, a critical route for about one-fifth of global oil and gas flows. Supply worries outweighed weak economic data from China, which pointed to slowing factory activity and softer demand growth.
As the conflict involving Iran disrupts global supply chains, farmers in parts of Africa are turning to alternatives such as cow dung and compost amid rising fertilizer costs.
In Senegal, farmer Abou Sow said fertilizer prices have climbed about 40 per cent since the war began on February 28. Concerned about the impact of disruptions linked to Iran's control over the Strait of Hormuz, a key shipping route, Sow said he had already shifted away from chemical fertilizers years ago.
Having adopted organic compost and manure from local herders, Sow now encourages other farmers to do the same. "We can't afford to wait for a ceasefire," he said. "It's risky to depend on chemical fertilizers."
The conflict has affected supplies of natural gas, a key ingredient in fertilizer production, while also disrupting global shipping routes, adding pressure on agricultural costs.