Overview

In March 2026, the Chandra Asri Group, one of Indonesia’s leading petrochemical producers of industrial raw materials (e.g. olefins, polyolefins and styrene monomers and their derivatives), issued a force-majeure notification to its business partners following the escalation of conflict between Iran, the United States (“US”) and Israel, which ultimately resulted in the closure of the Strait of Hormuz. The company indicated that geopolitical tensions in the Middle East had disrupted the distribution of raw materials throughout the petrochemical supply chain, particularly parts of the chain transiting through the Strait of Hormuz.[1]