Oil Shortage! Middle East Conflict Continues to Escalate Crisis Spreading to Other Areas

BlockBeats News, April 4th, according to CNN reports, the Middle East conflict has entered its second month, and the crisis of oil shortage is at risk of escalating into a worse situation - almost everything is expected to face a shortage. The Middle East conflict has severely restricted the transportation of oil and natural gas through the Strait of Hormuz, resulting in a global supply reduction of approximately one-fifth.

This disruption has not only driven up fuel prices but has also squeezed the supply of petrochemical products needed for everyday items such as manufacturing shoes, clothes, plastic bags, and more. With the rising prices of materials like plastic, rubber, polyester, this pressure is spreading to every corner of the consumer market.

Currently, the most impacted region is Asia, which accounts for over half of the global manufacturing industry and heavily relies on imported oil and other commodities. Dan Martin, Co-Head of Business Intelligence at Deloitte Forensic Advisory, said this will very rapidly affect all commodities such as beer, noodles, potato chips, toys, cosmetics, etc., as plastic bottle caps, transport pallets, snack packaging bags, and containers are becoming increasingly difficult to source.

Martin added that adhesives used in shoes and furniture, industrial lubricants for machinery, paints, and solvents required for cleaning processes all rely on petroleum-derived products.