The Middle East conflict has led to a one-fifth reduction in global oil supply

On April 4th, according to CNN, the Middle East conflict entered its second month, severely restricting the transportation of oil and gas through the Strait of Hormuz, resulting in a global supply reduction of about one-fifth. The rise in fuel prices is squeezing the supply of petrochemical products needed for daily necessities such as shoes, clothing, and plastic bags, while the rising prices of materials such as plastics, rubber, and polyester are impacting the consumer market. The manufacturing industry in Asia has been particularly affected, with Deloitte Touche Tohmatsu consulting firm Dan Martin pointing out that the production of goods such as beer, noodles, potato chips, toys, etc. is facing pressure due to shortages of materials such as plastic bottle caps and packaging bags. The supply of petroleum derivatives such as shoes, furniture adhesives, and industrial lubricants is also affected.