Egyptian fertilizer producer Mopco has sold 6,000t of granular urea at $505/t fob, while fellow supplier Alexfert concluded 6,000t at $495/t fob.
Both cargoes are for loading in March and likely to be for European markets. Argus assessed granular urea at $480-485/t fob Egypt to Europe on 27 February.
Prices have jumped after the US military today began "major combat operations" in Iran following co-ordinated Israeli strikes. Iran has responded by firing missiles towards Israel and US military bases across the region.
Multiple Egyptian urea producers have reported no change in gas supply to plants in the country so far in the aftermath of the attacks. But Israel's energy ministry has instructed Greek firm Energean to temporarily suspend production at its offshore Karish gas field "following the recent geopolitical escalation in the region", the company told Argus. A source said Israel has also ordered the closure of the country's largest gas field, Leviathan, as a precautionary measure. Leviathan operator Chevron referred questions to the energy ministry. There is no indication of the status of Chevron's other gas field in Israel, Tamar.
Gas flows from Israel to Egypt were cut in the wake of the conflict between Israel and Iran in mid-June last year, which resulted in all Egyptian urea production being taken offline, sending urea prices into Europe soaring.
The Middle East is the largest urea export region globally and ships around 20mn t/yr, of which Iran accounts for about a quarter. Egypt typically exports around 4mn t/yr of urea, mostly to Europe.
Major urea producers in the Middle East host US forces, including Saudi Arabia, Qatar, the UAE, Bahrain and Oman.
