Middle East geopolitical tensions on global energy markets, which has directly led to increased costs for raw materials and transportation across the flame retardant industry

Escalating military conflicts involving the United States, Israel, and Iran have severely disrupted shipping through the Strait of Hormuz—known as the "world's oil valve"—which normally handles 30% of global seaborne oil trade (approximately 20 million barrels per day prior to the conflict) ¹. According to the International Energy Agency (IEA) March 2026 Oil Market Report, Gulf oil producers have cut output by at least 10 million barrels per day, resulting in a projected global oil supply drop of 8 million barrels per day in March ⁷. This supply shock has driven a sharp surge in oil prices: Brent crude futures recently approached $120 per barrel, with Macquarie Group warning that prices could reach $150 per barrel if the Strait remains closed through April, and even a de-escalation may keep prices anchored between $85−90 per barrel ⁵.

Raw Material Cost Pressures for Flame Retardant Production​

As a key player in the flame retardant sector, RSFR’s production relies heavily on petroleum-derived feedstocks. The upstream supply chain of flame retardants includes critical petrochemical raw materials such as phenol, bisphenol A, propylene oxide, and epichlorohydrin ²—all of which have seen significant price increases amid soaring crude oil costs. Inorganic flame retardants, including aluminum hydroxide and magnesium hydroxide, also face indirect cost pressures due to energy-intensive mining and processing requirements tied to oil prices ⁶. These cost escalations have created industry-wide challenges, as the flame retardant sector serves essential downstream markets including construction, electronics, and transportation.

Logistics Cost Surge Exacerbated by Supply Chain Disruptions​

In addition to raw material pressures, global transportation costs have surged due to the Middle East crisis. The near-halt of shipping through the Strait of Hormuz has forced logistics providers to adopt alternative routes, which are both less efficient and more costly ¹. European importers alone have incurred an additional €3 billion in energy import costs within the first 10 days of the conflict ¹, while maritime freight rates for oil and petrochemical products have risen sharply. Even with emergency measures such as the IEA’s release of 400 million barrels of strategic reserves ⁷ and alternative land corridors established by Gulf nations ³, the logistics industry continues to face significant bottlenecks that further inflate transportation expenses for flame retardant products.

RSFR’s Commitment to Stakeholders​

In response to these challenges, RISING STAR FLAME RETARDANT is implementing proactive measures to mitigate impacts while upholding product quality and supply reliability:​