Iran halts petrochemical exports until further notice

DUBAI - Iran halted all petrochemical exports to prioritise domestic supply and prevent shortages of raw materials, the economic newspaper Donya-e-Eqtesad reported on Thursday, due to disrupted production after Israel struck several petrochemical hubs.

The instruction was issued on April 13 by a senior National Petrochemical Company official overseeing downstream industries, and told petrochemical firms to suspend exports until further notice.

The export ban primarily aims to stabilise domestic markets and ensure supply to industries following damage caused by recent attacks.

Domestic prices for petrochemical and related products have been held at pre-conflict levels despite rising global prices, with officials saying the measures would remain in place to support local industry and consumers.

Key petrochemical production hubs in Asaluyeh and Mahshahr were targeted by Israel in recent weeks, with strikes hitting the utilities companies providing feedstock for petrochemical plants and disrupting production.

The U.S. military began blocking shipping traffic in and out of Iran's ports this week, a move aimed at dropping Iran's export revenues and exerting pressure on Tehran as Iranian and American diplomats consider a second round of peace talks.

According to Fars news, Iran exports around 29 million tons of petrochemical products per year, worth $13 billion.

-Dubai Newsroom; Editing by Kim Coghill/Reuters