Commentary
Given disruptions in supply chains all over the world, the conflict has shown that Iran’s role in the global economy is not merely centred on oil, says this writer.
Pistachio exports are being affected by the war on Iran. (AP Photo/Chan Long Hei)
31 May 2026 06:00AM
LONDON: The war between Iran, the US and Israel has escalated into a major global crisis, with consequences that are reaching far beyond the Middle East. The closure of the Strait of Hormuz, through which around 25 per cent of the world’s oil ordinarily passes, has rattled global energy markets.This has only been worsened by the US naval blockade of Iranian ports, which was imposed on Apr 13 in an attempt to restrict Iran’s ability to export its oil. In early May, the US Defense Department estimated that Iran had been denied nearly US$5 billion in oil revenue due to the blockade.But Iran’s role in the global economy is not merely centred on oil, as the conflict has shown. From methanol to pistachios and cement, the war is choking trade in a range of Iranian exports that underpin supply chains across Asia and the Middle East.
