The conflict in the Middle East is reshaping global energy and shipping routes, with direct implications for global construction commodities. Escalation around the Strait of Hormuz has increased logistics risk, lifted war‑risk insurance and bunker costs, and added a risk premium to crude oil and liquefied natural gas (LNG). While exposure varies sharply by region, Asian markets rely most on oil and LNG flows through the Strait, but any disruption reduces global seaborne supply, tightening balances and increasing insurance, oil and LNG prices worldwide.
Construction consultant Linesight has released a report that highlights how the global supply chains are more sensitive to fresh shocks in 2026 as they were already operating under strained conditions as part of the sustained Red Sea disruption between 2024 and 2025. Rising energy costs are also setting the stage for increasing construction budgets. The report also outlines key trends in construction commodities such as:
- Steel – exposed because it is both energy intensive and logistics sensitive. Europe in particular is the most exposed to the impact, though APAC markets are seeing more localised price noise rather than outright shortages.
- Copper – Middle East is not a major copper-producing region, but it is a critical supplier of sulphur which is essential for copper ore processing. With nearly half of global sulphur exports at risk, copper smelters face potential acid shortages. This supply pinch raises costs and could slow refined copper output, putting upward pressure on prices.
Rather than a wait-and-see approach for conditions to stabilise, Linesight recommends construction project owners to act early to limit cost and further exposure. Some solutions include diversification of sources for steel, rebase logistics plans, tracking indicators for material repricing and adjusting contracts to navigate war-risk.
