Asia’s petrochemicals sector is highly dependent on naphtha, liquefied petroleum gas (LPG), and methanol from the Persian Gulf, so the war in the Middle East is creating a major supply shock in Asia, which is the most vulnerable to supply disruptions from the Gulf region, trade credit insurance group Coface said last month. We are now in the sixth week of the war, the Strait of Hormuz is still de facto closed, and supply chains are reeling from the shock of slashed crude, naphtha, LNG, LPG, fertilizer, ammonia, urea, and helium supply. “The interruption of crop-nutrient supplies from the Gulf comes just as planting season begins in the Northern Hemisphere, threatening yields and harvests through the year and pushing food prices higher,” the International Monetary Fund (IMF) said last week.
Author: Tsvetana Paraskova
Published at: 2026-04-06 23:00:00
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