Commodity Prices Under Pressure Amid Middle East Conflict
Commodity Price Watch: May 2026
Seeking Alpha
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The ongoing conflict in the Middle East continues to affect commodity prices, particularly crude oil and natural gas. With the Strait of Hormuz expected to remain closed, concerns about potential shortages are rising as the war enters its third month.
- 01The Strait of Hormuz is anticipated to remain closed, impacting global trade.
- 02Crude oil and refined products are seeing upward forecast revisions due to the conflict.
- 03Natural gas prices are also affected, with the exception of US natural gas.
- 04The conflict has significant implications for chemicals, plastics, and select nonferrous metals.
- 05The situation remains uncertain with a tenuous ceasefire in place.
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The conflict in the Middle East, now in its third month, continues to exert pressure on commodity prices, particularly crude oil, refined products, and natural gas. The Strait of Hormuz, a critical shipping route, is expected to remain closed, raising concerns about potential shortages. As a result, forecasts for crude oil and natural gas prices have been revised upward, although US natural gas remains an exception. The war's impact extends to chemicals, plastics, and some nonferrous metals, highlighting the broad implications of the ongoing situation. The uncertainty surrounding the ceasefire further complicates the outlook for commodity markets.
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