Middle East flare-up to boost supply chain stress
We expect a more drawn-out Middle East conflict, with a long-term reduction in the level of shipping through the Strait.
The recent flare-up in US-Iran tensions has led to the effective closure of the Strait of Hormuz again and we now expect a more drawn-out conflict, with a long-term reduction in the level of shipping through the Strait.
What you will learn:
- Supply-chain stress will increase in the near-term and remain at a more elevated level than previously anticipated. Acute supply pressures will remain more concentrated in Asia, with smaller and more price-driven impacts in Europe and the US.
- Sulphuric acid prices have continued to increase. A heavy reliance on Middle Eastern exports, compounded by China’s export ban, has driven especially sharp increases in Asia.
- Refined oil product prices have also crept up since the renewal in US-Iran tensions, particularly for diesel and jet fuel.
- Despite the disruption, there is still a significant degree of strategic inventory in the US and Germany, meaning the global helium market still retains solid buffers.
Download the report to view our Hormuz commodity supply vulnerability tracker.
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