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Gulf oil shock deepens crisis for Asia’s petrochemicals industry

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Published13 MAR 26 - 15:09 Reading time  minutes

“It’s like an iceberg hitting a ship that is already capsizing,” said Jorge Molinero, lead naphtha analyst at Sparta Commodities. “The Iran escalation adds a meaningful layer of stress on top of an already fragile situation.”

Financial Times, March 13, 2026 – The Middle East conflict is disrupting naphtha supplies to Asia, deepening the crisis in the region’s petrochemical industry. Japan and South Korea, which rely heavily on Gulf imports, are facing rising prices and tightening supply, forcing some producers to cut output or warn of shutdowns. The shock is accelerating industry consolidation already underway due to Chinese overcapacity and weak margins.

Author

Jorge Molinero

Commodity Owner

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