Rising oil prices cause multiplier effect, Middle East warfare spreading to textiles and beverages.

Sina Finance reported on March 30th that recently, Houthi rebels in Yemen have launched multiple ballistic missiles towards southern Israel. With the involvement of the Houthi rebels, the risk in the key maritime passage of the Red Sea, the Bab el Mandeb strait, has significantly increased. Analysts warn that the impact of this conflict on the oil market is continuously growing. If the conflict continues for weeks, even if the situation eventually eases, it will be difficult for the supply to catch up in a timely manner, leading to a significant depletion of global crude oil inventories. The impact of the oil price increase will not only be limited to the energy sector, but will also be transmitted downstream through petrochemical products such as naphtha, ultimately affecting products such as plastics that are present in almost all consumer goods. The founder of energy consulting company KSG pointed out that as many global commodities rely on plastic for packaging and transportation, the range of daily goods affected will be very broad. The shortage and price increase of petrochemical products will gradually be transmitted to various sectors such as textiles, detergents, food, beverages, etc. The co-founder of supply chain analysis company Altana, Schwartz, stated that the impact on the petrochemical market has a "multiplier effect," meaning that a cost increase will be amplified throughout the industry chain. Altana's data shows that the Gulf region transports approximately $733 billion worth of petrochemical raw materials, intermediate products, and finished products, which will further affect around $3.8 trillion worth of downstream goods, covering almost all daily consumer goods from toothpaste to towels.