April 7 Business Watch: Iran war hits Persian Gulf facilities; Trump throws tariffs on pharma

The past week has demonstrated that the war in Iran is still directly impacting the chemical industry. Petrochemical facilities in Kuwait and the United Arab Emirates have been attacked by drones (see below), while a major Iranian petrochemical hub was the target of airstrikes.And secondary effects have been worsening for weeks. Some refineries and petrochemical facilities in Asia, for example, have turned down their operations by 10% or more because they depend on petroleum-based feedstocks that go through the Strait of Hormuz, now effectively shuttered.Now comes an early indication of tertiary effects: finished goods will become more expensive and scarce because polymer and petrochemical raw materials are in short supply. The Malaysian Glove Manufacturers Association is asking the country’s government for relief because of a shortage of nitrile butadiene rubber latex. Malaysia makes 45% of the world’s rubber gloves.C&EN is on the watch for other shortages. Tires also incorporate lots of synthetic rubber; might they their production be interrupted soon too? And if petrochemical plants in Asia are slowing production and making less of the polyester precursor p-xylene, higher textile prices could be in our future.Questions? Comments? Tips? Email C&EN senior correspondent Alex Tullo at [email protected] stories from C&ENBusiness in briefWarring parties trade shots at petrochemical plantsIn an escalation that puts the chemical industry directly in the line of fire, petrochemical plants have come under attack in the United Arab Emirates, Kuwait, and Iran over the past week. The Abu Dhabi–based petrochemical maker Borouge says debris from an intercepted attack