BASF chief warns Iran conflict could disrupt global car production

Wednesday 10 June 2026 - 09:36

By: Dakir Madiha

BASF chief warns Iran conflict could disrupt global car production

The chief executive of BASF has warned that an escalating conflict involving Iran could trigger widespread shortages of key raw materials and disrupt global automotive manufacturing in the second half of 2026. Markus Kamieth said supply chains are increasingly exposed to geopolitical shocks that are already filtering through industrial production networks.

He said inflationary pressures and transport disruptions linked to the conflict are worsening conditions for manufacturers. He pointed to early signs of scarcity in materials such as sulfur and helium, both widely used in industrial and automotive processes. He described the situation as a structural vulnerability in highly integrated global supply chains, where a shortage in a single input can halt entire production lines.

Kamieth warned that the risk of disruption remains uneven but persistent, with potential bottlenecks emerging without warning. He said automotive production is particularly exposed because of its reliance on tightly coordinated cross-border logistics and just-in-time delivery systems. He added that even temporary interruptions in maritime routes linked to strategic chokepoints such as the Strait of Hormuz could amplify shortages and raise costs across multiple sectors.

Broader economic assessments cited alongside the warning indicate that the conflict has already imposed significant costs on global businesses, estimated at more than 25 billion dollars through higher energy prices, disrupted trade flows and operational adjustments. Other industrial groups have also begun passing rising costs to consumers, while small and medium-sized enterprises operating internationally report mounting financial strain as global conditions tighten.