With Iran maintaining a hard-line stance on the Strait of Hormuz blockade and concerns growing over disruptions to the global fertilizer supply chain, fertilizer stocks were strong early on the 13th.
As of 9:25 a.m., Chobi was trading at 19,720 won on the KOSDAQ market, up 3,580 won (22.18%) from the previous trading day. It jumped to as high as 20,950 won early in the session, marking a 1-year high.
At the same time, Namhae Chemical (15.46%), Kyungnong (3.4%), Hyosung ONB (10.12%), and Nousbo (7.5%) were also surging.
Buying appears to have been spurred by concerns that a prolonged Strait of Hormuz blockade could shake the global fertilizer supply chain. The Strait of Hormuz is a key chokepoint that handles 20% of the world's crude oil shipments and one-third of fertilizers.
Earlier, Iran's supreme leader, Ayatollah Mojtaba Khamenei, hinted at the possibility of continuing the Strait of Hormuz blockade. Speaking on state TV, Khamenei said, "We must continue the blockade of the Strait of Hormuz as a means of pressuring the enemy (the United States and Israel)."
The U.S. response is also adding to uncertainty. U.S. Energy Secretary Chris Wright said in a CNBC interview that while a U.S. Navy escort in the Strait of Hormuz "could happen relatively soon, it is difficult right now," adding, "At the moment we are not prepared."