The military conflict between the United States, Israel, and Iran, which escalated at the end of February 2026 with bombings and counterattacks, has triggered a geopolitical crisis with global economic consequences. One of the most critical factors has been the risk of the closure of the Strait of Hormuz, one of the most important maritime routes in the world.
Although much of the media attention has focused on the impact on oil and gas, the conflict also threatens international trade in industrial raw materials such as metal scrap. This material, composed mainly of iron, steel, aluminum, and copper, is key to the steel industry and construction. Its trade depends largely on stable maritime routes, low logistics costs, and efficient supply chains.
Disruption in maritime routes
The Strait of Hormuz is a strategic corridor through which approximately 20% of the world’s oil passes, in addition to large volumes of industrial goods. The possibility of its closure or restrictions on maritime traffic has created an increase in logistical uncertainty.
The main consequences include:
- Diversion of ships to longer routes, increasing transit times.
- Increase in maritime insurance premiums due to the risk of war.
- Delays in ports and disruptions to delivery schedules.
In this context, maritime transport becomes more expensive and less predictable, directly affecting global trade in raw materials, including scrap.
India: a key player in the scrap market
India is one of the main players in the global scrap market. The country imports large volumes of iron and steel scrap to supply its steel industry.
The increase in transport and maritime insurance costs makes these imports more expensive. Added to this is the rise in energy prices, since India relies heavily on oil from the Middle East. As a result, the cost of producing recycled steel also increases.
In addition, delays in maritime routes can cause uncertainty in the supply of raw materials, affecting industrial production and the competitiveness of the Indian metallurgical sector.
Saudi Arabia: indirect impacts on industry
Saudi Arabia, one of the world’s largest oil exporters, may also experience indirect effects. Although rising crude oil prices could increase its energy revenues, higher logistics and energy costs may affect industries that depend on recycled metals.
Sectors such as construction and the production of metal components could see their margins reduced if transport and energy costs continue to rise.
Pakistan: greater economic vulnerability
For Pakistan, the impact could be even greater. The country depends on imports for fuels and industrial raw materials, including metal scrap.
Rising maritime transport and energy costs can translate into higher production costs and reduced competitiveness for its industries. In addition, logistical delays may make it difficult to maintain a regular supply of materials needed for the metallurgical sector.
An impact that goes beyond oil
The conflict in the Middle East demonstrates how geopolitical tensions can quickly disrupt global trade. Beyond the energy market, the war is causing disruptions in maritime transport, increases in logistics costs, and greater volatility in the trade of industrial raw materials.
Although it is still too early to measure all its consequences, the conflict is already forcing companies and governments to rethink trade routes, diversify suppliers, and strengthen the resilience of supply chains. In an increasingly interconnected world, the impact of these conflicts extends far beyond the region where they originate.r beyond the region where they originate.
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