FUQING BIOTECHNOLOGY CO., LTD
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The Impact of the US–Israel–Iran Conflict and a Potential Strait of Hormuz Blockade on the Chemical Industry
Mar 11,2026
Recent geopolitical tensions involving the United States, Israel, and Iran have raised serious concerns across global industries. One of the most critical risks is the temporary blockade of the Strait of Hormuz—a vital corridor for international energy and chemical trade. Any instability in this region can quickly send shockwaves through global supply chains.
When the Strait of Hormuz is blocked, crude oil prices often surge past $100 per barrel. This directly affects the cost of essential chemical raw materials such as propylene oxide, methyl chloride, and vinyl acetate-ethylene (VAE), which are widely used in the production of construction additives and specialty polymers. As oil prices rise, the cost of these key derivatives inevitably follows.
These upstream materials are also closely tied to the production of cellulose ethers and polymer powders. For manufacturers, fluctuations in energy markets and chemical feedstocks can quickly translate into higher production costs and supply uncertainties.
At FUQING BIOT, our core products—HPMC (Hydroxypropyl Methyl Cellulose), MHEC (Methyl Hydroxyethyl Cellulose), HEC (Hydroxyethyl Cellulose), and RDP (Redispersible Polymer Powder)—rely on a complex global supply network. As a result, changes in raw material prices and international logistics directly influence manufacturing stability and delivery timelines.
At the same time, heightened uncertainty in the Middle East and any disruption to shipping through the Strait of Hormuz can drive ocean freight rates sharply higher, adding further pressure to global trade and industrial supply chains.
For companies in the chemical industry, these developments are not just distant geopolitical headlines. They are realities that affect daily operations—from procurement and production planning to pricing and customer supply.
Yet even in these challenging times, we hold firmly to one belief: war has no winners. Peace is the only sustainable path forward.
As the holy month of Ramadan, FUQING BIOT stands with partners and friends around the world in hoping for stability and understanding. We sincerely wish that people across the Arab world may experience a peaceful and blessed Ramadan. We hope that one day soon, the dawn will break not over conflict, but over calm seas and open shipping lanes.
May peace prevail, and may the world move toward greater stability and cooperation.
Ramadan Kareem
Pray for Peace
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