Since late February 2026, the Iran conflict has reached a new level of escalation. The U.S. and Israel have declared their goal of bringing about regime change in the Middle Eastern country. To this end, they are resorting to the use of military force. In response, Iran is attacking targets in Israel as well as U.S. military bases and critical infrastructure facilities in Arab countries. Additionally, the regime in Tehran has blocked the strategically important Strait of Hormuz.
Polyurethane – Production from and with Gas
The raw material for PAPUREX’s polyurethane tubing is, as the name suggests, the plastic polyurethane (PUR). In most cases, PUR production begins with natural gas. Through chemical processes (cracking), basic building blocks such as ethylene and propylene are extracted from it. These are further processed into the two main components of PUR: isocyanates and polyols. To trigger the chemical reactions required to produce these products, very high temperatures and enormous pressure are necessary. To achieve this, gas is once again used as an energy source in the factories.
The Impact of the Iran Conflict on Gas Prices
The Strait of Hormuz is a bottleneck for many critical products in the global industry. In addition to crude oil, this includes natural gas, among other things. Since this important trade route is currently almost completely blocked, key suppliers of gas to the European market are being cut off. One example is Qatar, which in the recent past supplied around 20% of the world’s liquefied natural gas demand.
In addition to the blockade of the Strait of Hormuz, the attacks by Iran mentioned at the outset are also having a direct impact on gas price trends. For example, facilities for transporting liquefied natural gas in Qatar have been destroyed.
Gas price trends can be tracked, for example, via indices such as the ICE Endex Dutch TTF Natural Gas Futures.
Iran Conflict: The Immediate Impact on PAPUREX
As a company in the plastics industry that processes hundreds of tons of polyurethane annually, PAPUREX is significantly affected by these developments. We have already received the first price increases from our raw material suppliers. Nevertheless, especially in uncertain times, it is important to us to stand by our customers as a reliable partner for polyurethane tubing. The supply situation is secured in the short term. The PAPUREX management has also decided to absorb the first wave of price increases and not pass them on to customers. An official statement on this matter is available for download below.