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Israeli Airstrike Triggers Iran-Wide Chemical Plant Shutdown: 9% of World’s Methanol Capacity Offline

18 - Jun - 2025

Breaking: Israeli airstrikes trigger complete shutdown of MEG, methanol, urea, and ammonia production in Iran, sending global supply chain risks skyrocketing. With Iran accounting for 9% of global methanol capacity (covering 40% of China's imports), feedstock shortages threaten MTO plant operations. Brent crude surged 15% to break through $75/bbl, while US urea prices jumped 6% within 48 hours. Egypt is snapping up 600,000 tonnes of US LNG as Europe's chemical industry declares entry into a VUCA (volatile/uncertain/complex/ambiguous) state. Given expectations of prolonged Middle East volatility, traders must activate emergency supply chain restructuring plans immediately.


Israeli Airstrike Triggers Iran-Wide Chemical Plant Shutdown: 9% of World’s Methanol Capacity Offline