The War-Driven Supply Shock Already Roiling Manufacturing in Asia

Countries in Asia are reeling from a shortage of naphtha, a petroleum derivative used in a dizzying array of products, from household plastic wrap to industrial inks and medical devices.

Early global alarm over the war in the Middle East centered on skyrocketing crude prices and gasoline spikes at the pump. But in East Asia, naphtha has emerged as the first major industrial disruption.

Japan and South Korea rely heavily on naphtha imported from Qatar and Kuwait, which are unable to export because of the more than two-month-long blockade of the Strait of Hormuz. Even the naphtha processed by Asian refineries often comes from crude shipped through the strait.

The economic fallout is already visible. In Japan, consumer goods companies unable to secure a stable supply of naphtha are stripping colors from food packaging to conserve ink. Both Japan and South Korea are scrambling to secure alternative supplies ahead of June, the point at which some industry experts warn shortages could begin to affect manufacturing more broadly.

Article source: https://www.nytimes.com/2026/05/24/business/what-is-naphtha.html