Chemical industry at risk

If the Strait of Hormuz remains closed for more than a month, it will harm global chemical production, especially in the Middle East and Asia, the rating agency Fitch warned. “Large volumes of chemicals, plastics and fertilizers are transported through the Strait of Hormuz. Europe and Asia cover between 10 and 20 percent of their polyethylene and polypropylene needs with imports from the Middle East.” He explained that the Gulf also produces approximately a third of the nitrogen fertilizers sold in the world and that the conflict also restricts the supply of key raw materials such as naphtha, liquefied petroleum gases, sulfur and methanol.