The Iran war and closure of the Strait of Hormuz has triggered the worst crisis in the Middle East since the 1979 oil crisis, according to regional chemical producer and distributor Servochem.

- Dubai’s Jebel Ali port is within the Strait of Hormuz and is unable to export

- Other ports in Oman and Saudi Arabia cannot handle large volumes, or very hazardous products

- Each week of Strait closure will add one month of post-war disruption when it finally reopens

- Companies would willingly pay a toll to resume use of Strait of Hormuz

- UAE inflation, unemployment is rising

- Servochem can only export 20% of usual pre-war levels

- Customers are slowing production as costs rise and demand is uncertain

- “We have lost 2026”

- Raw material and shipping costs have spiked

In this ICIS Think Tank podcast, Will Beacham interviews Yogesh Dodani, director at Dubai-based chemical distributor and manufacturer Servochem.

As the war in the Middle East pushed up energy costs in Europe, politicians in Brussels have sprung into action on moves to improve chemical industry competitiveness.

• Iran war pushed EU to accelerate moves on cutting energy costs
• Now up to member states to implement cost cutting measures
• Positive moves on Emissions Trading System (ETS)
• Fast-tracking for anti-dumping duties (ADDs) is welcome
• Brussels has finally moved from words to action
• Update to Reach regulation has been halted
• New ETS structure to be revealed on July 15. Force majeure option would be welcome
• War effect will last throughout 2026 and likely into 2027
• Companies in Europe are delaying maintenance as demand has risen
• Customers and producers are rethinking 100% globalised business models, seek to make supply chains more robust
• Northern China can access Russian crude, South more reliant on Middle East
• Expect slump in consumer spending, rising rates of savings in Europe, demand destruction later in the year
• Permanent plant closures, M&A is creating a strong European industry
• AEQUITA, Borouge International, Moeve-Galp merger will create Europe-based powerhouses

In this ICIS Think Tank podcast, Will Beacham interviews Cefic director general Marco Mensink and Paul Hodges, chairman of New Normal Consulting.

Join the ICIS European Recycling Team as they discuss the key topics and takeaways they hope to get from this year's Plastics Recycling Show Europe (PRSE) taking place in Amsterdam on 5-6 May.

You can meet the Europe Recycling Team at the ICIS Booth in Hall 5, Stand F110, where you can scan a QR code to get access to the latest ICIS data on the recycling markets and learn more about ICIS' sustainability offerings.