Israel–Iran–US conflict pushes oil near 2022 high, hits markets

Global energy markets opened Monday with a sharp rally as geopolitical tensions intensified. Crude oil surged nearly 29 per cent from Friday’s close, trading around $118 per barrel, and analysts warn prices could test the $150 level last seen during the 2022 energy crisis. Natural gas is also moving higher, amplifying volatility across commodity and derivative markets.

The energy rally is expected to transmit quickly through the derivative and industrial raw material markets, particularly those tied to petrochemicals, polymers, textiles, and agrochemicals. Many of these feedstocks originate from Middle East energy and chemical exports, meaning higher oil and gas prices can rapidly push up manufacturing input costs worldwide.

Major markets impacted by crude oil surge

1. Petrochemical
2. Plastic & Polymer
3. Textile
4. Agrochemical & fertiliser
5. Specialty chemicals
6. Packaging & plastics manufacturing
7. Transportation and logistics
8. Specialty Chemicals etc.

Market context

A roughly 30 per cent surge in crude oil prices has heightened pressure across global industrial commodity markets, with petrochemical, polymer, textile and fertiliser feedstocks expected to rise + 10–25 per cent as higher energy costs move through supply chains.

Crude-linked feedstocks such as naphtha, paraxylene and mono-ethylene glycol (MEG) are expected to react fastest due to their direct dependence on refinery outputs from the Middle East. Polymer markets including polyethylene and polypropylene, widely used in packaging, automotive and consumer goods, may follow as producers pass through higher feedstock costs.

Fertiliser inputs such as ammonia and urea, which rely heavily on natural gas, could also firm as energy prices rise, potentially lifting agricultural input costs and adding to broader inflation pressures.

Market outlook

If tensions between Israel, Iran, and the United States continue to escalate, markets may begin pricing in the risk of longer-term disruptions to Middle Eastern energy exports, which could keep oil and industrial raw material prices elevated worldwide.

Fibre2Fashion News Desk (VK)