War in Iran & the Strait of Hormuz: Global Energy and Commodity Impacts
Posted on March 13, 2026
The ongoing conflict involving Iran and the closure of the Strait of Hormuz has sent shockwaves through global energy and commodity markets. Roughly 20% of the world’s oil supply moves through this narrow passageway connecting the Persian Gulf to the Arabian Sea. When this critical shipping lane becomes restricted, the immediate consequences ripple through markets for gasoline, diesel, jet fuel, and petrochemical feedstocks. Oil traders quickly price in supply risk, which leads to higher crude prices and rapid volatility in refined fuels and chemical raw materials used across the industrial economy.
The disruption is particularly significant for Europe and Asia, whose economies depend heavily on the steady flow of oil and liquefied natural gas from the Middle East. Countries such as China, India, Japan, and South Korea import large volumes of crude and natural gas that typically transit the Strait of Hormuz. Europe also relies on these shipments to supplement energy supplies. When shipments are interrupted or delayed, refineries, chemical plants, and plastics manufacturers face tightening supply conditions, which quickly drives up prices for fuels, polymers, solvents, and other industrial materials derived from petrochemicals.
The impact extends well beyond energy markets. Ocean freight costs have surged as insurers raise war-risk premiums and shipping companies reroute vessels to avoid high-risk areas. These changes increase transit times and shipping costs for everything from chemicals and plastics to agricultural commodities and industrial materials. When freight costs rise sharply, they compound the price pressure already created by energy disruptions, pushing up costs across global supply chains and adding further volatility to commodity markets. As as a result of the above, inexpensive imports for Europe and Asia may either no longer be available, no longer be competitively priced or both may be true.
In this uncertain environment, companies throughout the chemical supply chain must focus on resilience and preparedness. At A. G. Layne, Inc., the strategy remains clear: maintain strong inventories and diversified sourcing so customers continue receiving the materials they depend on. While market prices may remain volatile in the near term due to geopolitical uncertainty, our priority is ensuring reliable supply and supporting customers through periods of disruption in global energy and chemical markets.
Bottom Line: We are doing the best we can to make sure we have products in stock to supply while also still offering great prices. Please stay close to us during this time.