Oil shortage! Middle East conflict continues, and the crisis is spreading to other sectors

BlockBeats message, April 4, according to CNN, the Middle East conflict has entered its second month, and the risk that the oil shortage crisis could evolve into an even worse situation is growing—virtually everything will be in short supply. The Middle East conflict has severely restricted the transport of oil and natural gas through the Strait of Hormuz, cutting global supply by about one-fifth.

This disruption not only drives up fuel prices, but also squeezes the supply of petrochemical products needed for everyday goods such as shoes, clothing, and plastic bags. As prices for materials like plastics, rubber, and polyester rise, this pressure is spreading to every corner of the consumer market.

The most significant impact is currently in Asia, where the region has more than half of the world’s manufacturing and is highly dependent on imported oil and other commodities. Dan Martin, co-head of commercial intelligence at Deloitte First Advisory firm, said this will spread to all goods—very, very quickly—such as beer, noodles, potato chips, toys, cosmetics, and more, because plastic bottle caps, shipping pallets, snack packaging bags, and containers are becoming increasingly difficult to source.

Martin added that adhesives used for footwear and furniture, industrial lubricants used for machinery, and solvents needed for painting and cleaning processes also all depend on oil-derived products.