German Chemical Industry Warns Middle East War May Hit Supply Chains

Germany’s chemical industry is warning that the escalating conflict in the Middle East could disrupt global supply chains, with potential impacts extending well beyond oil and natural gas markets. The German Chemical Industry Association (VCI) said the sector is already seeing early signs of pressure in supply networks linked to the region.

According to industry representatives, the Middle East plays a crucial role in supplying key petrochemical feedstocks used in chemical manufacturing worldwide. Materials such as naphtha and other petrochemical inputs are widely exported from Gulf producers, and any disruption could raise costs and create shortages for European manufacturers that rely on global supply routes.

The warning comes as geopolitical tensions have already triggered volatility in energy markets. Brent crude briefly surged above $110 per barrel following the outbreak of conflict, while European gas prices also jumped amid fears of supply disruptions. Higher energy prices could significantly increase operating costs for the energy‑intensive chemical sector.

VCI also noted that supply risks are not limited to energy markets. Shipping routes, logistics hubs and petrochemical exports from the Gulf region are all vulnerable to disruption during prolonged conflict. Industry groups say companies are evaluating alternative sourcing strategies and more resilient logistics planning, but warn that a prolonged crisis could weigh on industrial production across Europe.