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
- Straight Status at a Glance: The Strait of Hormuz remains largely closed to commercial shipping, with vessel activity showing clear disruption through U turns, drifting, dark activity, and selective movement.
- Vessel Traffic: On April 14, the second day of the blockade, 19 vessels transited the Strait, including 5 inbound and 14 outbound, mostly Iranian flagged container ships and one Malawi flagged tanker.
- U.S Blockade: U.S. forces have begun mine clearance operations in the Strait, and a separate blockade of Iranian ports started on April 13 at 10 AM ET.
- Ceasefire: Seven days into the ceasefire that took effect on April 8, no agreement has been reached. Talks concluded on April 12 without resolution on the nuclear program, Strait control, or sanctions relief. A second round may take place later this week, ahead of the April 21 ceasefire expiry.
Critical Metrics to Watch
The ceasefire is a fragile first step toward restoring traffic through the Strait of Hormuz. 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.