Iran War Disrupts Asian Supply Chains and Manufacturing

The conflict in Iran is causing shortages of plastic and fuel across Asia, forcing factories to cut output. Firms are struggling to secure key raw materials.

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The conflict involving Iran is exerting severe pressure on Asian economies, disrupting supply chains for essential goods ranging from food and toys to cosmetics and industrial components. As the regional energy crisis intensifies, businesses and consumers are facing a period of extreme volatility characterized by soaring raw material costs and widespread product shortages.

Oil tankers are seen off the coast of Fujairah as Iran threatens maritime traffic in the Strait of Hormuz following the start of the U.S.-Israel conflict, March 3, 2026. REUTERS/Amr Alfiky/File Photo
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