Impacts of the Iran Conflict on Global PPE Supply Chains.
The Iran conflict has disrupted the Strait of Hormuz, one of the world's most critical oil chokepoints. The strait handles approximately 20% of global oil consumption, with 84% of its crude oil flows destined for Asian markets.
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Strait of Hormuz Status Restricted
- Strait Status at a Glance: The Strait of Hormuz remains effectively closed to normal commercial shipping under competing blockades. Iran restricted passage beginning February 28 and the U.S. imposed a naval blockade on Iranian ports on April 13, reducing transit to a fraction of pre-conflict levels. The U.S. launched Project Freedom on May 4 to escort neutral merchant vessels, before pausing it to allow time for a deal to end the Iran war.
- Vessel Traffic: On May 7, 2 transits were recorded (2 inbound, 0 outbound). Pre-conflict, the Strait averaged approximately 178 transits per day. Since the beginning of the conflict, vessel traffic has steadily been below 10% of normal pre-conflict levels.
- Insurance & Shipping Economics: War-risk premiums have surged from roughly 0.25% of vessel value to 3%–8%, or $3M–$8M per large tanker transit. Some insurers have withdrawn hull war cover entirely. The U.S. DFC established a $40B reinsurance facility to backstop coverage. However, insurers will likely require months of sustained stability before restoring normal terms. Mine clearance alone could take up to six months.
- Negotiations & Ceasefire: The April 8 ceasefire remains technically in effect but is increasingly fragile. Diplomatic efforts continue through Pakistani mediators, and Secretary of State Rubio said on May 8 that the U.S. expects a response from Iran on its proposal for a formal 60-day ceasefire that would lead to negotiations on Iran's nuclear program and reopening the strait. However, Iranian officials have publicly rejected key concessions, and analysts say Tehran's leadership is divided over whether to engage or drag out talks closer to the U.S. midterm elections for better leverage.
Critical Metrics to Watch
Vessel traffic and insurance premiums will be the earliest signals of whether conditions are genuinely improving.
- Daily vessel traffic and war-risk vessel insurance premiums are early indicators of Strait of Hormuz viability.
- Recovering vessel counts and reductions in insurer coverage costs will signal improving energy flow.
- Even as transit improves, full supply chain normalization — freight patterns, inventory, and supplier confidence — will likely take months.
Supply Chain Impact
Global Market Overview
This disruption is cascading into the global PPE supply chain, driving volatility in petrochemical-based raw materials like polypropylene and Nitrile Butadiene Rubber (NBR) while increasing costs and delays for finished goods due to higher energy prices and constrained shipping routes.
Gloves
Limited flow of crude oil impacting NBR availability
Manufacturers are sourcing NBR at highly elevated prices
FG output slowed in April and May planning. Expected to continue in June.
Cost of nitrile gloves have risen April and May production planning. Expected to continue in June.
Gowns
Supply of raw materials remains stable
Resin prices increasing, translating to an increase in RM price
Manufacturer production remains stable
Potential for future market price adjustment due to RM cost
Masks
Supply of raw materials remains stable
Resin prices increasing, translating to an increase in RM price
Manufacturer production remains stable
Potential for future market price adjustment due to impact on production cost (vary by product)
PRIMED’s Approach to Supply Chain Resilience
PRIMED is actively monitoring the situation and are uniquely positioned with well-established measures in place to support continuity across all products.
Strategic Safety Stock
Maintaining strong inventory levels across all key categories to buffer against potential disruptions and ensure consistent support for our committed customers.
Upstream Partnership Integration
Ensuring ongoing communication with manufacturing and raw material partners to secure priority access to supply and anticipate production changes.
Logistics & Route Optimization
Collaborating closely with freight partners to optimize shipping lanes and bypass global bottlenecks.
Continuous Risk Assessment
Constant internal reviews to rapidly adjust our supply chain as the situation evolves.
- U.S. Energy Information Administration (EIA). Amid regional conflict, the Strait of Hormuz remains critical oil chokepoint, EIA, eia.gov.
- Winward
- Financial Times
- Market supply constraints and price increases are based on current market data and supply chain indicators.