The Middle East Crisis (Iran–Iraq and Surrounding Regions) and Its Impact on Global Plastics — Why Pulp Mold Packaging Is Becoming the Solution Businesses Must Consider

Overview: A Crisis Beyond Politics

In 2026, rising geopolitical tensions in the Middle East—particularly across Iran, Iraq, and the Persian Gulf region—have significantly disrupted the global economic system.

One of the most critical strategic points is the Strait of Hormuz.

• Handles 20–30% of the world’s oil transportation [1]

• A key route for natural gas and petrochemical feedstocks

• A vital artery for the global plastics industry

When conflict escalates:

• Shipping routes are disrupted or rerouted

• Refineries and chemical plants are damaged

• Energy prices surge

This creates a global domino effect.

Global Supply Chains Are Under Pressure

Recent reports indicate:

• Energy infrastructure across the Middle East has suffered major damage [2]

• Any closure of the Strait of Hormuz immediately halts transportation

• Shipping traffic has dropped from 138 vessels/day to nearly zero [3]

Key Impacts:

1. 🚢 Shipping Delays & Cost Surge [1]

• Longer routes → higher fuel consumption

• Extended delivery times

• Freight costs increasing multiple times

2. ⛽ Rising Energy Prices

• Oil prices reaching around $100/barrel [4]

• LNG and natural gas heavily impacted [5]

Energy = cost driver of all industries

3. 🧪 Shortage of Chemical Raw Materials [6]

The Middle East produces key materials such as:

• Ethylene

• Propylene

• Methanol

• Naphtha

These are core inputs for plastics.

When supply drops:

• Factories halt production

• Products become scarce

• Prices spike immediately

Why Plastics Are Hit the Hardest

Plastic is not just packaging—it is part of a petrochemical chain:

Oil / Gas → Naphtha → Polymer → Plastic

👉 If oil and gas are disrupted → the entire plastic supply chain is affected

Key data:

• Polymer prices increased 41–42% within 2 weeks [7]

• Naphtha prices surged ~74% [7]

• Resin shortages reported globally [8]

Real Business Impact

• Plastic packaging → price increases

• Food packaging → supply shortages

• Electronics packaging → delays

• Pharma packaging → rising costs

👉 Ultimately, costs are passed to customers

And this is not limited to the Middle East—it’s a global impact, especially across Asia (including Thailand).

Not Just the Middle East — A Global Impact [9]

Reports indicate that:

• Countries across Asia (including Thailand) are directly affected

• Factories have begun reducing production capacity

• Some countries have started enforcing energy consumption restrictions

Why Businesses Are Moving Away from Plastics

With unstable plastic supply chains, companies are now seeking:

• Alternative materials

• More controllable supply chains

• Resources not tied to oil

This is where molded pulp packaging becomes a strong solution.

Pulp Mold: A Solution in Times of Crisis

1. Not Dependent on Petrochemicals

Molded pulp uses:

• Recycled paper

• Paper fibers

Less affected by oil and geopolitical risks

2. More Stable Supply Chain

Plastic:

• Depends on Middle Eastern resources

• Relies heavily on international logistics

Molded pulp:

• Can be produced locally

• Easier to control supply

3. More Stable Cost in the Long Term

When:

• Oil prices rise

• Polymer prices increase

• Shipping costs surge

Plastic prices spike immediately

But molded pulp:

• Uses local raw materials

• Relies on recycled paper

More stable over time

What About Shipping Performance? (Customers' Pain Point)

A common concern:

“Can paper really replace plastic?”

The answer is yes—and in some cases, even better.

Key Functional Benefits:

Shock Protection Designed specifically for each product Supports drop testing standards	Dust Protection – Optional Closed structure Surface coating
Water Resistant – Optional Eco-friendly coating available Withstands humidity	Export Ready Withstands Temperature variations

Molded pulp is heat-formed during production, making it resistant to temperature changes during shipping

Custom Testing: A Key Advantage

Customers can define testing standards such as:

• Drop Test (e.g., 91 cm / 100 cm)

• Compression Test

• Humidity Test

• Transport Simulation

• Climate Simulation

Ensuring products arrive safely at destination

📦 Why Molded Pulp Fits Today’s Market Better

Factor	Plastic	Pulp Mold
Raw Material	Oil / Gas	Recycled Paper
War Risk	High	Low
Price Stability	Volatile	More Stable
Supply chain	Global dependent	Locally controlled
ESG / Sustainability	Low	High

A Shift in Global Trends

This crisis highlights:

“Supply chains dependent on a single resource = high risk”

Global businesses are now:

• Diversifying suppliers

• Reducing petroleum dependency

• Transitioning to sustainable materials

This Is More Than an Energy Crisis [1]

The Middle East situation is not just affecting energy—

It is reshaping global industries

• Demand for eco-friendly packaging is rising

• Molded pulp is becoming a mainstream solution

• Businesses are prioritizing sustainability + stability

Is It Time to Switch?

If your business is facing:

• Rising plastic costs

• Shipping delays

• Unstable packaging supply

This might be the right time to transition

How Sarnti Green Pack Can Help

We provide:

• Custom packaging design

• Product-specific testing support

• Shock, dust, and water protection

• Export-ready packaging solutions

Contact us:

sales@pulpmoldthai.com

(+66) 2-9064957-60