The Gulf conflict and disruption to the Strait of Hormuz exposed petrochemical markets’ vulnerability to geopolitical supply shocks by constraining movements of crude oil, naphtha, liquefied petroleum gas (LPG), and natural gas liquids (NGLs) through a critical energy chokepoint. Using November 2025 to January 2026 as the pre-conflict baseline and February to May 2026 as the disruption period, this paper analyzes the Asia-Pacific market, focusing on feedstock availability, pricing, trade flows, and competitiveness in China, Japan, and South Korea. The analysis identifies four interconnected transmission channels: feedstock availability, price volatility, competitiveness shifts, and alternative feedstocks.
