This analysis tracks the crisis country by country, documents the major facility disruptions, examines price dislocations across the key product chains, and assesses what different resolution scenarios mean for Asian producers and end markets.

Long-Term Outlook

Director, Downstream

Aditya Banerjee

Consultant, Refining & Hydrogen

Sarfaraz Hussain

Petrochemicals 

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Weeks into the Iran war, Asia's petrochemical industry is facing its most severe feedstock crisis yet. The effective closure of the Strait of Hormuz has cut off a major portion of the region's naphtha supply and nearly all Gulf LPG imports, pushing cracker run rates to historic lows and triggering force majeure declarations from South Korea to Indonesia. What began as a supply shock has become a structural test of how the world's most import-dependent chemical industry copes when its primary supply artery shuts down unexpectedly.
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Asia Petrochemical Industry: Impact of the 2026 Middle East Supply Disruption

Weeks into the Iran war, Asia's petrochemical industry is facing its most severe feedstock crisis yet. The effective closure of the Strait of Hormuz has cut off a major portion of the region's naphtha supply and nearly all Gulf LPG imports, pushing cracker run rates to historic lows and triggering force majeure declarations from South Korea to Indonesia. What began as a supply shock has become a structural test of how the world's most import-dependent chemical industry copes when its primary supply artery shuts down unexpectedly.
Prices for naphtha and ethylene have surged since the onset of the conflict, with naphtha costs in Japan and ethylene in Northeast Asia nearly doubling within a matter of weeks. Numerous petrochemical facilities across Asia are now running below normal capacity, declaring force majeure, or shutting down entirely. The situation remains fluid, as political developments and ceasefire efforts keep markets in a state of acute uncertainty. 
This analysis tracks the crisis country by country, documents major facility disruptions, examines price dislocations across key product chains, and assesses the implications of different resolution scenarios for Asian producers and end markets.
<img src="https://cdn.aglty.io/stratas-advisors/upload/Screenshot%202026-04-15%20at%2012.36.21 PM_20260415123633.png?w=800" alt="chart">
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Petrochemicals

Asia

Middle East

Global Petrochemicals,Integrated Market Assessment