Today, shipping in the Strait of Hormuz has virtually stopped. Crisis in the Middle East: the world may face a shortage of strategically important raw materials Daniel Johnson Peace and Security
The shipping crisis in the Strait of Hormuz caused by the war in the Middle East has led to shortages of critical minerals on which economies around the world depend. Against this background, competition for access to these raw materials is intensifying among states.
Before the outbreak of war on February 28, when Israel and the United States launched strikes on Iran, followed by retaliatory attacks on the Persian Gulf, a wide range of key minerals and related materials remained available, the United Nations Economic Commission for Europe (UNECE) notes. panels.
As a result, commodity markets are seeing rising prices and a possible shift to new production sites with lower geopolitical risks, which increases the number of countries capable of processing such minerals.
Supplies of sulfur, helium and naphtha under threat
“The consequences of the Gulf War are not only felt in the energy market – they also affect a number of petroleum by-products,” said Dario Liguti, Director of the UNECE Sustainable Energy Division, referring to sulfur, helium and naphtha.
All of them are by-products of petroleum refining and are widely used in industries ranging from the production of fertilizers and insecticides to plastics, matches, cooling systems and semiconductors. Naphtha in particular is an important raw material for the chemical industry.
“The first reaction—besides, of course, rising prices—is that industries will cut back on consumption and therefore production… be it solar panels, magnets or batteries,” Liguti noted. daily).
Today, shipping has been virtually stopped due to attacks on ships and amid the ongoing standoff between Iran and the United States over the use of the strait.
If the conflict continues, shortages of key minerals “will become obvious,” a UNECE representative warned, forcing industries to reduce production of critical materials used in equipment in the field renewable energy and digital technologies.
“Over time, this will lead to higher prices and then lower availability of such equipment,” he added. Liguti.
Searching for new suppliers
He noted the “desire of many countries around the world to ensure access to these minerals,” which will lead to the formation of strategic reserves and will avoid similar disruptions in future.
“For now, the consequences are being felt in certain regional markets, especially in South and Southeast Asia, where the processing and primary processing of these resources are concentrated. However, over time, the geography of influence will expand,” he emphasized.
The UNECE representative also pointed out that the crisis in oil and natural gas threatens the global transition to green energy. accelerate as we are already behind the 2030 Paris Agreement targets,” he said.
The UN Economic Commission for Europe brings together 56 countries in Europe, North America and Asia and is working to align critical commodity policies with the UN Sustainable Development Goals.