🛢️ Iran–Israel tension: oil prices rise and may affect the rubber market
In recent days, Israel launched an airstrike against Iran aimed at halting its nuclear development and ballistic capabilities.
This immediately pushed oil prices up — from around USD 65 to USD 74 per barrel by the end of the week.
The increase reflects heightened geopolitical risk, with markets pricing in a premium due to potential disruptions in oil supply.
While this could be a short-term spike, if the conflict escalates, prices may again approach USD 80 per barrel.
Meanwhile, OPEC continues ramping up production, which may help balance the market to some extent.
For rubber, the impact could be felt on two fronts:
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On one hand, logistics costs are likely to increase due to higher oil prices.
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On the other, as synthetic rubber is a petroleum derivative, its prices may also rise — potentially impacting the competitiveness and pricing of natural rubber, albeit to a lesser extent.
It remains to be seen whether this cost increase can offset the downward pressure from rising global natural rubber production.
Natural rubber and latex prices | In USD per 100Kg