A potential blockade of the Strait of Hormuz poses a severe threat to European sulfur supplies, according to new analysis from the Supply Chain Intelligence Institute Austria and the Complexity Science Hub.
While markets have focused on oil and gas exposure, researchers warn that sulfur logistics are "massively endangered" by the escalating tensions in the Persian Gulf.
The warning highlights a critical vulnerability in the industrial supply chain.
Sulfur is a byproduct of oil refining and natural gas processing, much of which passes through the Strait.
A disruption would not only spike energy prices but also trigger a "sulfur shock" for European manufacturers, leading to indirect cost increases across sectors reliant on the commodity for fertilizer and chemical production.
This development adds a new layer of complexity to the ongoing geopolitical crisis in the region.