Conflict disrupts shipping and demand, export trade faces multiple challenges

The short-term high-intensity military conflict between Iran and Israel that broke out in June 2025, although it has been temporarily ceased at the end of June, has had a profound impact on the global trade pattern, regional security situation and supply chain stability. Especially for companies with export business in the Middle East, this conflict is undoubtedly a sudden blow to trade.

This situation has greatly interfered with energy exports and international shipping in the Middle East, and has become a direct cause of fluctuations in export trade. Major shipping companies have adjusted their Middle East routes, and some cargo ships have detoured around the Cape of Good Hope in Africa, resulting in longer shipping times and higher costs. In particular, goods exported from China, India, Southeast Asia and other countries to the Middle East are facing serious delays, and cross-border e-commerce, daily necessities, home building materials and other industries have been directly impacted.

The rapid rise in crude oil and natural gas prices will indirectly push up the prices of raw materials in the chemical, building materials, plastics, metals and other industries, further compress the profit margins of export companies, and affect the price competitiveness of international orders.

During the war and its subsequent stages, the consumer markets in many countries in the Middle East tended to be conservative. Infrastructure investment, home decoration, and non-essential consumption all declined, demand for building materials, sanitary ware, hardware, and home appliances shrank, and the number of export orders dropped significantly.