In late February, a significant disruption occurred as the Strait of Hormuz, a crucial global maritime choke point through which approximately a fifth of the world’s oil and gas transits, was effectively closed. The immediate and largely anticipated fallout included a sharp surge in crude oil prices, widespread volatility across global energy markets, and a heightened sense of alarm among geopolitical observers. However, what proved less predictable was the swift and pervasive domino effect this crisis would have on intricate global supply chains. A prime example emerged in Asia, where the vital chip manufacturing sector began to feel the squeeze. In response to these escalating pressures and the necessity to secure essential raw materials, South Korea, a major player in the global semiconductor industry, initiated steps to procure naphtha from Russia, highlighting the urgent need to diversify and stabilize its supply lines amidst the broader geopolitical and economic turmoil.
