The US–Israel–Iran war has weighed heavily on petrochemical markets, as supply flows through the Strait of Hormuz are disrupted and shipping costs rise, leading to tighter global supply and higher prices.
Analysts told Argaam that the current crisis is driven by supply chain disruptions rather than weak demand, amid partial shutdowns in production capacity and a sharp increase in transport and insurance costs. 
James Wilson, an analyst at ICIS, said geopolitical tensions in the region have caused severe disruptions in petrochemical markets, with 75% to 80% of chemical exports from the Middle East affected. “I think in practice it might be higher,” he noted. “By that, I mean, the chemical experts, which is struggling to leave the Middle Eastern region. Right? we are 100% seeing the impacts on the markets at the moment.”
“You’re already, we can see the impact immediately. So where the impact is most failed,” the analyst said.
Global prices are increasing very quickly. “So, we have a number of prices which have increased by it. I don’t know, doubled up by double digit percent points or doubled,” Wilson noted.
The US–Israel–Iran war has weighed heavily on petrochemical markets, as supply flows through the Strait of Hormuz are disrupted and shipping costs rise, leading to tighter global supply and higher prices.
Analysts told Argaam that the current crisis is driven by supply chain disruptions rather than weak demand, amid partial shutdowns in production capacity and a sharp increase in transport and insurance costs.
James Wilson, an analyst at ICIS, said geopolitical tensions in the region have caused severe disruptions in petrochemical markets, with 75% to 80% of chemical exports from the Middle East affected. “I think in practice it might be higher,” he noted. “By that, I mean, the chemical experts, which is struggling to leave the Middle Eastern region. Right? we are 100% seeing the impacts on the markets at the moment.”
“You’re already, we can see the impact immediately. So where the impact is most failed,” the analyst said.
Global prices are increasing very quickly. “So, we have a number of prices which have increased by it. I don’t know, doubled up by double digit percent points or doubled,” Wilson noted.
