Iran’s strike on Saudi chemical plant triggers tech price shock

Saudi chemical maker SABIC has become a choke point in the global tech economy after Iran struck its Jubail complex earlier this month, knocking out production of a specialized plastic used to make circuit boards inside everything from smartphones to AI servers.

The material – PPE resin – helps electronic circuits run safely and reliably. SABIC supplies most of the global market, so when it went offline, manufacturers couldn’t get a key ingredient needed to build devices, Reuters reports.

Printed circuit board prices have jumped sharply as companies scramble for alternatives, with some increases nearing 40% this month alone.

The global printed circuit board industry is projected to increase by 12.5% to reach $95.8 billion in 2026, according to a recent report from Prismark.

Meanwhile, farmers worldwide are facing a fresh spike in fertilizer prices because of the Strait of Hormuz shutdown, which has halted exports of key inputs like urea, sulphur and ammonia from Qatar and other producers, Reuters reports.

Iran crisis sparks farm chemical crunch, threatening food supplies

It’s not just oil. War with Iran is also making a range of chemicals critical for food production more expensive, including fertilizer components like urea and ammonia, Bloomberg reports.

The Middle East is the source of some 45% of the global urea supplies, which cannot be stored for long periods.

That means logistical disruptions such as the shutdown of the Strait of Hormuz can quickly tighten the market and send prices soaring.

Western sanctions have curtailed imports of Russian fertilizers, while China has imposed export restrictions to protect domestic demand and support its farming sector, the news agency said.