Not just oil and gas. War on Iran hurts supply chains from pharmaceuticals to semiconductors
Public Lokpal
March 04, 2026
Not just oil and gas. War on Iran hurts supply chains from pharmaceuticals to semiconductors
New Delhi: The Iran war has effectively halted oil tanker movement in the key Strait of Hormuz. But it's also disrupting the wider global supply chain beyond oil, affecting everything from pharmaceuticals from India, semiconductors from Asia and oil-derived products like fertilisers that come from the Middle East.
Cargo ships are stuck in the Gulf or making a much longer detour around the southern tip of Africa. Planes carrying air cargo out of the Middle East are grounded. And the longer the war drags on, the more likely it is that there will be shortages and price increases on a wide range of goods.
On Tuesday, President Donald Trump pitched a plan aimed at getting oil and trade moving again through the Strait.
Trump said on social media he ordered the US International Development Finance Corp. to provide political risk insurance for tankers carrying oil and other goods through the Persian Gulf "at a very reasonable price."
Political risk insurance is a type of coverage intended to protect firms against financial losses caused by unstable political conditions, government actions, or violence. Marine insurers had been cancelling or raising rates for insurance in the region.
He said that, if necessary, the US Navy would escort oil tankers through the Strait of Hormuz.
Computer chips, pharmaceuticals and other goods face delays
A wide range of products is shipped through the Middle East region. Along with about 20 per cent of the world's oil that comes from the region, products made with natural gas, such as petrochemical feedstock - used to make plastic and rubber - and nitrogen fertiliser come from the Middle East. Pharmaceuticals exported from India and semiconductors and batteries exported from Asia to the rest of the world are all shipped through the region and could face delays.
AP