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Corporate Update

China’s Exports In The Crossfire Of The War

• By  Textile Excellence
• March 15, 2026

War erupted between Israel and Iran on February 28, escalating rapidly. Senior Iranian leaders were killed, and the conflict shows no signs of abating. Global markets are already jittery. Crude oil, gold, currencies, and equities are volatile. Energy and chemical markets face supply disruptions.

Iran’s closure of the Strait of Hormuz alarms global trade. Nearly one-third of seaborne crude passes through it. Any disruption spikes raw material costs for chemical fibres and textiles. Asian exports to Europe and the U.S. could reroute via the Cape of Good Hope, adding days to transit and raising freight costs. Procurement and order placements are already at risk. A short war may limit the impact. A prolonged conflict will amplify disruptions.

China exports around US$ 15 billion in textiles and apparel to the Middle East, about 5% of its total. UAE and Saudi Arabia are the largest markets, followed by Iraq, Israel, Jordan, and Iran. Even modest disruptions in this region could ripple across global supply chains.

Trade with directly affected Middle Eastern countries is already under strain. If the war broadens or drags on, pressure on China’s textile and apparel exports—and the wider global market—will intensify. Companies must monitor developments closely and prepare for higher costs, delays, and supply shocks.

Iran’s closure of the Strait of Hormuz alarms global trade. Nearly one-third of seaborne crude passes through it. Any disruption spikes raw material costs for chemical fibres and textiles. Asian exports to Europe and the U.S. could reroute via the Cape of Good Hope, adding days to transit and raising freight costs. Procurement and order placements are already at risk. A short war may limit the impact. A prolonged conflict will amplify disruptions.