Middle East war disruptions put petchem supply chains in focus in General Energy News 30/03/2026 This content is part of a series exploring key themes from the World Petrochemical Conference being held in Houston March 23-27. Disruptions to supply chains and trade flows resulting from the war in the Middle East took center stage at the World Petrochemical Conference on March 26. Market turmoil underscored the importance of investing in resilience amid uncertainty and volatility. At the same time, the conflict has brought into sharper focus long-standing structural challenges and opportunities that predated the war and are expected to persist beyond it. Resiliency efforts Supply disruptions due to the war could prompt chemical companies to seek alternative feedstock suppliers in other regions, according to S&P Global Energy CERA analysts. Early signals of route changes were already appearing in cargo flows, said John Moseley, chief commercial officer at the Port of Houston. Houston, the largest US port by tonnage, has seen “a noticeable increase in containerized chemical movements, both liquids and resins/plastics, up sharply in a short window” over recent weeks, Moseley said, potentially indicating increased flows to Asia and Europe. Panelists at the conference said the industry was transitioning from purely economic decision-making to a balanced approach that prioritizes affordability, security and reliability, fundamentally reshaping where companies choose to build capacity. “The closing of the Strait of Hormuz has never happened before today,” said Kurt Barrow, senior vice president and head of oil, fuel and chemicals research at S&P Global Energy. “But going forward, it is now a more likely scenario. The Iranian regime is now aware of its power over the strait.” Amid these concerns, market participants have shifted their focus toward improving their companies’ long-term survival prospects. “What matters now is nimbleness, strong systems and processes that let you respond to risk quickly,” said Vishal Goradia, CEO at Vinmar International. Challenges and opportunities Panelists at WPC 2026 continued to discuss long-standing challenges and solutions that predated the disruption in the Strait of Hormuz caused by the war. Global oversupply conditions that drove some chemical markets downward in 2025 were expected to persist even after the war ends, underscoring the need for cost-cutting, rationalization and greater efficiency, according to the panelists. “But the sector will eventually turn; operating rates will recover and demand will grow. The companies that survive will be those that can achieve operational excellence and build up resilience,” said Andre Wilkie, associate director of strategy and integration at XRG. Panelists called for greater policy clarity, as uncertainty in US trade and tax policy has sent mixed signals to investors, affecting operations such as domestic fertilizer production capacity. “There’s a clear correlation between good policy and investment in US ammonia capacity. Good energy and investment policy drives industry response,” said Veronica Nigh, chief economist at The Fertilizer Institute. Policy discussions also focused on tariff initiatives, with panelists from the styrene and aromatics markets highlighting that China’s competitiveness and excess capacity have continued to challenge businesses overseas. China’s cost competitiveness has enabled continued profitability “even [in the case of] 50% duties on sp