Iran conflict could disrupt markets for everything from plastics to fertilizers

Middle East War Disrupts Global Plastics Trade

Tensions in the Middle East often trigger concerns about rising gasoline prices. But disruptions to oil supplies could affect much more than the cost of filling up a car. That’s because crude oil is not only burned as fuel. It is also the raw material for thousands of products that modern societies depend on, including plastics, fertilizers, clothing fibers, medicines and electronics.

As a biochemist, I’m interested in how certain chemicals can shape society, and oil is a prime example.

The stakes become clearer when looking at the Strait of Hormuz, a narrow waterway between Iran and Oman. About one-fifth of the world’s petroleum liquids consumption passes through the strait each day, making it one of the most important oil shipping routes on Earth. If conflict significantly disrupts traffic there, the effects could ripple far beyond energy markets.

A map of the Strait of Hormuz, which is a narrow body of water between Iran and Oman.

The Strait of Hormuz.
Goran_tek-en/Wikimedia Commons, CC BY-SA

Oil is a chemical starting point

Crude oil is a complex mixture of hydrocarbons – molecules made mainly of carbon and hydrogen. Refineries and chemical plants separate and transform these molecules into smaller chemical building blocks known as petrochemicals.

Some of the most important petrochemical building blocks include chemicals such as ethylene, propylene and benzene. Manufacturers can then convert these building blocks into more complex forms, which make up plastics, solvents, synthetic rubber and other industrial materials.

While fuel is a well-known product, fuels actually represents only a portion of what is produced from crude oil. The refining process generates a wide range of petroleum-based materials used to manufacture everyday items, such as plastics, medicines, electronics, cosmetics, clothing fibers and household goods.

A diagram showing a bunch of different types of hydrocarbon molecules derived from petroleum

Hydrocarbons are molecules made predominantly from hydrogen and carbon. Different forms, derived from crude oil, are used in many types of manufacturing.
André O. Hudson/Patel & Shah, 2013

Plastics that shape modern life

One of the most visible uses of oil is the production of plastics. Scientists can link individual petrochemical molecules to form polymers, which are long chains of repeating units that create materials such as polyethylene, polypropylene and polystyrene.

Because plastics are lightweight, durable and relatively inexpensive, they have become essential to global manufacturing.

These plastics appear in countless products, including food packaging and water bottles; medical equipment, such as syringes and IV bags; electronics casings and appliances; automotive parts; and construction materials, such as pipes and insulation.

Even technologies designed to reduce carbon emissions depend on them. Wind turbines, solar panels and electric vehicles all contain plastic components derived from petrochemicals.

Fertilizer that feeds billions

Oil and natural gas also play a critical role in…

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