When a conflict breaks out between two big oil-related countries like Israel and Iran, it doesn’t just affect them—it shakes up the entire world. One of the biggest industries feeling the pressure is the lubricants market. Even if no oil tanks are hit, just the fear of war can cause oil prices to jump, shipping to slow down, and materials to become harder to find.
This makes it more expensive and complicated to produce the lubricants that businesses need every day.
The Lubricant Supply Chain Is Under Pressure
What Business Owners Need to Know About War and Global Conflicts
Prices Go Up Fast
When a conflict or war happens in an important part of the world, it can make markets panic—even if nothing has been damaged yet. People are scared that oil supplies might be cut off, and that fear makes prices go up quickly.
Oil Prices Jumped 7%
The price of Brent Crude (a type of oil used around the world) hit its highest point in 5 months. Since oil is used to make lubricants, this makes everything more expensive.
20% of Oil Goes Through a Risky Area
A place called the Strait of Hormuz is important because a lot of the world’s oil passes through it. If that area becomes dangerous, it makes shipping and insurance more expensive too.
The Chain Reaction in Base Oils
Not all base oils are being affected the same way by the conflict. The problems started with Group I oils, and then caused more trouble for Group II and Group III oils.
Prices Are Going Up for All Groups
- Group III had the biggest price jump because some people started panic-buying and hoarding it.
- Group I got more expensive because Iran (a major supplier) is having trouble shipping it out.
How One Problem Causes Another
- Group I Trouble: Iran, which sells a lot of Group I oil, can’t ship it easily because of the conflict. That makes prices go up and oil harder to find.
- Group II Gets Pulled In: Because Group I is harder to get, companies switch to Group II. But now, too many people want Group II, so its price goes up too.
- Group III is Hoarded: Some traders are holding onto Group III oil on purpose, hoping to sell it later for more money. This fake shortage makes prices rise even more.
The Bigger Problem: It’s Not Just About Base Oil
The price of your final product isn’t just about base oil. Because of the conflict, many parts of the supply chain are getting more expensive at the same time, creating a chain reaction of rising costs.
Crude Oil Prices Go Up
The conflict makes people worried about oil supplies, so the price of crude oil (used to make lots of products) increases.
Shipping Problems
It costs more to ship things now because of war risk insurance and higher prices to move cargo through the Persian Gulf.
Additives Are Harder to Get
The special ingredients added to make lubricants better are also delayed or more expensive because they travel the same risky routes.
Final Products Cost More
All of these rising costs—oil, shipping, and additives—get added together. That means the price of the finished lubricant goes up a lot.
High Prices or Stopping Production? Here’s What Companies Can Do
When things get tough, companies need to stop just reacting and start planning smart. Instead of just being a seller, you need to think like a partner who helps others through the problem. Here are four smart ways to keep your business strong:
Find More Suppliers
Look for other places to get base oils, especially Group II oils. Try to buy from different countries so you’re not relying on just one. Also, keep some extra raw materials and finished products in storage just in case there are delays.
Improve Your Products
If you can’t use Group I oils anymore, see it as a chance to make better products with Group II or III oils. Then, tell customers they’re getting something even better!
Talk Honestly with Customers
Tell your customers why prices are going up. Explain that it’s not just one thing, but many problems happening at once. Being honest early helps them trust you.
Be Ready for Anything
Think about all the things that could happen—like the war getting worse or calming down. Use both long-term deals and short-term buys to stay flexible and handle price changes.
Editor-at-Large
A passionate writer in the lubricant industry, Awais Iqbal has been covering oils, greases, and industrial fluids since the start of his career. At 25, he’s already written for blogs, catalogs, and brand guides across the UAE. Awais’s insights help companies connect with their audience, and his clear, helpful writing style is trusted by brands in the region.
