The ongoing conflict in the Middle East and rising tensions around the Strait of Hormuz are affecting not only oil prices but also a wide range of sectors in the global economy, according to an April 2 analysis by the World Economic Forum.
The situation is important because it highlights how disruptions in this strategic region can impact essential goods used worldwide. The report notes that at least nine key products for production and consumption are being affected by difficulties in maritime trade.
Fatih Birol, director of the International Energy Agency, said that this is one of the largest interruptions to energy supplies globally. However, he added that “the impact goes much further than crude oil.” One area particularly affected is agriculture. Fertilizers such as urea and ammonia rely heavily on exports from this region. Nearly 20 percent of global trade in these fertilizers comes from there, which could lead to higher food production costs and increased inflation worldwide.
Sulfur, a crucial input for sulfuric acid used both in fertilizers and batteries for electric vehicles, is also impacted. Methanol—vital for the chemical industry—could become scarce if restrictions continue, potentially affecting plastics, paints, and synthetic fibers manufacturing. The report also warns about consequences for energy transition efforts: materials like graphite (essential for batteries) may be harder to obtain; green hydrogen projects face uncertainty due to geopolitical risks.
Industrially important resources such as aluminum are at risk too; about nine percent of non-Chinese global aluminum production comes from the Middle East. Disruptions here would affect construction, transportation, and renewable energy sectors directly. Helium presents another concern: Qatar produces nearly a third of world supply—a shortage could affect semiconductor manufacturing and medical equipment like MRI machines.
Chemical products including monoethylene glycol (used in textiles and packaging) have already shown price increases; iron ore and steel shipments now face higher logistics costs due to rerouted shipping lanes and rising freight rates. The World Economic Forum concludes that this crisis might speed up changes toward more diversified supply chains globally: “Ensuring access to these inputs has become not just a commercial issue but one of economic security worldwide.”
