Iran war threatens global sectors beyond energy

Iran essentially shutting the Strait of Hormuz could become a tipping point for the global economy, hitting a broad range of sectors, experts warned.

More than 20% of the world’s oil output traversed through the waterway before the start of the war. But many other raw materials, including a large share of the global aluminum supply, are shipped through the key chokepoint.

Meanwhile firms spanning from petrochemicals to electronics are forecasting that the threat to global supply chains could upend their businesses, suggesting the global commercial impact could extend well beyond energy: An Apple and Nvidia supplier warned of an impact on component supplies, while a Taiwanese chip firm told Nikkei that the situation was “very critical.”