Middle East Crisis Oil Market

Warning: Iran War Hits “Virtually All” Goods

Nearly a quarter of global petrochemical production – which is used in plastics and is dependent on oil – is in the Middle East. Therefore, the closure of the Strait of Hormuz could hit the industry hard and ultimately consumers hard, writes CNBC.

Plastic prices have already risen by 15 percent in some places and with some delay, it risks having an effect on “virtually everything we use” except wood products, says energy professor Tom Seng.

Analysts say the shortage of petrochemicals is affecting textiles, cleaning products and packaged food, among other things.

“The conclusion we draw is that they will ultimately have an impact on inflation,” says AtsiSheth at credit rating company Moody’s.

Another 20 Pakistani oil ships allowed to pass through

Another 20 ships, two a day, are now allowed to pass through the Strait of Hormuz under the Pakistani flag. This is what Pakistan's Foreign Minister Ishaq Dar wrote in a post on X.

He states that it is a "welcome and constructive gesture" from Iran:

"It is a messenger for peace and will contribute to stability in the region".

Earlier this week, Iran gave the green light to allow ten Pakistani oil ships to pass through the Strait of Hormuz, writes TT.