The Long Son Petrochemicals facility in Vietnam.
Siam Cement Group (SCG), Thailand's largest cement producer and industrial conglomerate, has raised concerns that prolonged war in the Middle East could drive up global energy costs and disrupt raw material supplies, posing significant challenges to its operations.Chief executive Thammasak Sethaudom said that if instability continues until this September, global oil reserves could be affected, leading to higher operating costs across industries.
"The peace talks have yet to reach a final conclusion, so there is still risk for global energy prices, crude oil and petrochemical raw materials such as naphtha," he said.
The warning comes after Washington and Tehran signed a memorandum of understanding aimed at ending hostilities between the US-Israel alliance and Iran, including efforts to halt fighting in Lebanon.
However, renewed clashes and Israeli strikes in Lebanon have prompted Iran to reconsider closing the Strait of Hormuz, a critical waterway that had recently reopened, according to media reports.
