{"id":10134,"date":"2026-03-23T17:21:00","date_gmt":"2026-03-23T13:21:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/economy\/iran-war-hits-europes-industry\/"},"modified":"2026-03-24T08:37:29","modified_gmt":"2026-03-24T04:37:29","slug":"iran-war-hits-europes-industry","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/economy\/iran-war-hits-europes-industry\/","title":{"rendered":"Iran Conflict Causes Disruption in Europe&#8217;s Industrial Sector: What It Means for Global Investors and Businesses"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p>KLEINKARLBACH, Germany \u2014 In a modest office decorated with plastic pots and detergent packaging at German chemical firm Gechem, owner Martina Nighswonger is confronting mounting challenges with a growing sense of urgency.<\/p>\n<p>After grappling for years with the repercussions of the global pandemic, soaring energy costs triggered by Russia&#8217;s invasion of Ukraine, and punitive U.S. tariffs, the ongoing war in the Middle East is now driving up the prices of crucial raw materials once again.<\/p>\n<p>\u201cThere\u2019s just no relief. Each year, profits shrink a bit more until they vanish entirely,\u201d Nighswonger said at Gechem\u2019s plant in Kleinkarlbach, where she now convenes daily crisis meetings and vents frustration on a punching bag. \u201cIt\u2019s exhausting, and you reach a point where you just don\u2019t know what to do anymore.\u201d<\/p>\n<p>Gechem, which produces chemicals for household cleaning products and bottles brake fluid for the automotive industry, is among the many European companies bearing the brunt of the latest crisis affecting sectors from chemicals and plastics to metals, textiles, and toys.<\/p>\n<p>While the global consequences of the Gulf conflict are widespread, European industries are experiencing a more severe impact due to already elevated energy costs, according to executives from Germany, France, Denmark, and Switzerland.<\/p>\n<p>Following Iran\u2019s blockade of the Strait of Hormuz, which interrupted oil exports after attacks by Israel and the United States, further retaliatory strikes on major gas facilities in Iran and Qatar last week have driven crude oil prices close to $120 per barrel \u2014 nearly double the cost at the start of 2026.<\/p>\n<p>Germany\u2019s economy alone could incur losses of up to 40 billion euros ($46 billion) over the next two years if oil prices remain at $100 per barrel, the IW German Economic Institute warns. This illustrates how vulnerable Europe\u2019s industries have become after enduring years of high energy expenses, fierce competition from China, and factory shutdowns.<\/p>\n<p>Europe\u2019s largest economy, still struggling with the aftermath of the Ukraine war, faces some of the highest wholesale power prices globally, at $132 per megawatt hour (MWh). This surpasses prices in the United States ($48 per MWh) and the EU average ($120 per MWh), according to data from the International Energy Agency.<\/p>\n<p>\u201cEurope is clearly on the frontline and lacks the capacity to absorb a second major energy shock in such a short timeframe,\u201d noted Ipek Ozkardeskaya, senior analyst at Swiss bank Swissquote. \u201cGermany and the UK appear most vulnerable to this energy crisis.\u201d<\/p>\n<p>Gechem, established in 1861, represents Germany\u2019s Mittelstand\u20143.4 million mid-sized companies that collectively employ over 33 million people and contribute more than half of the nation\u2019s economic output.<\/p>\n<p>The company, which reported sales of 46 million euros last year and employs 165 people, has frozen new hires and, for the first time in nearly twenty years, is considering potential layoffs, Nighswonger revealed.<\/p>\n<p>Planned investments to acquire a new bottling machine and expand the company\u2019s solar power installation\u2014projects valued at several million euros\u2014have been suspended.<\/p>\n<p>These disruptions are partly due to a 20% surge in the price of sulfamic acid, sourced from Asian suppliers and used in Gechem\u2019s toilet and dishwasher tablets, which has already added between 300,000 and 400,000 euros to operating costs this year, Nighswonger added.  <\/p>\n<p>\u2014 Reuters<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/p>\n<p>The spiraling energy costs and geopolitical tensions that severely impact European industries, as illustrated by Germany\u2019s chemical sector struggles, <strong>highlight the critical importance of energy security and supply chain resilience<\/strong>. For businesses in Oman, this creates a significant <strong>opportunity to attract European manufacturing and industrial investments seeking more stable, cost-effective energy and raw material sources<\/strong>. Smart investors should consider <strong>leveraging Oman\u2019s strategic location and energy resources to position it as a regional hub<\/strong>, while also diversifying into renewable energy projects to mitigate risks linked to global energy volatility.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Kleinkarlbach, Germany, chemical firm Gechem struggles amid rising costs from global conflicts and energy price spikes. Owner Martina Nighswonger faces shrinking profits, halted expansions, and possible job cuts as Europe&#8217;s high energy costs and geopolitical tensions hit industries hard.<\/p>\n","protected":false},"author":2,"featured_media":10135,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[482],"tags":[4227,4023,4226],"class_list":["post-10134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-chemical-manufacturing","tag-energy-crisis","tag-german-industry"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2026\/03\/3329666.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/10134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=10134"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/10134\/revisions"}],"predecessor-version":[{"id":10136,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/10134\/revisions\/10136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/10135"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=10134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=10134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=10134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}