This Week's Top Five Stories in Supply Chain
Strait of Hormuz: When Will it Open and Who Gets Priority?
The closure of the Strait of Hormuz, triggered by Iran in response to a US naval blockade, has pushed global supply chains into a prolonged state of disruption and effectively reached a stalemate after more than eight weeks.
The blockade began on April 13 and Iran reacted by closing the Strait to all foreign ships. On April 19, Iran’s First Vice President Mohammad Reza Aref said: “The choice is clear: either a free oil market for all, or the risk of significant costs for everyone.”
In the UK Darren Jones, Chief Secretary to the Prime Minister, said the government was examining higher energy, food and flight ticket prices as it stepped up plans to offset potential food and fuel shortages. “Our best guess is eight plus months from the point of resolution that you'll see economic impacts coming through the system.”
The extent of disruption now depends on when the Strait reopens, how quickly cargo flows return to something near normal levels and which cargoes receive priority.
Forecasts on reopening timelines remain divided.
India’s Diet Coke Shortage Exposes a Hidden Packaging Risk
Of all the impacts on supply chains during the conflict in the Middle East, India’s abrupt shortage of Diet Coke might be one of the most surprising. But should it be?
Disruption from the Iran war has hit global energy supplies hardest. But while oil and gas flows have dominated headlines, the latest shock has exposed a less obvious vulnerability: the movement of industrial materials such as aluminium.
Aluminium is a critical input for packaging across multiple consumer sectors, and the Gulf accounts for around 9% of global aluminium production.
As shipping routes and cargo movements have been restricted, supply chains reliant on that production have felt the strain. Aluminium is among the materials caught in the disruption.
As a consequence, Diet Coke has become increasingly difficult to find in several cities in India, not because of a shortage of ingredients or demand, but due to a lack of aluminium cans.
Coca-Cola’s supply in the country has been constrained as shipments of cans are delayed or reduced, forcing the company to ration stock and prioritise distribution.
Iran Conflict Drives PCB Supply Disruption and Tech Costs
Printed circuit boards are emerging as a critical point of disruption for manufacturers worldwide as the conflict in the Middle East strains global electronics supply chains.
The war involving Iran has curtailed supplies of key raw materials and driven a sharp increase in PCB prices.
These components are foundational to virtually all electronic devices, from consumer goods such as smartphones and laptops to high-performance infrastructure supporting artificial intelligence and cloud computing.
The disruption represents a further challenge for technology manufacturers already contending with rising memory chip costs and persistent volatility across component markets.
It also underscores the widening impact of geopolitical instability on upstream supply chains, particularly in sectors reliant on petrochemicals and specialised materials. As S&P Global’s Kurt Barrow notes, “this is such a shock to the system for nations and companies”, underlining how geopolitical risk is now reshaping even the most deeply embedded supply chains.
Aluminium Tariff Relief: Ford vs the US Government
The interruption to domestic aluminium sheet supplies in the US has exposed the vulnerability of automotive manufacturers to single-supplier dependencies.
Ford Motor has recorded a US$2bn loss from two fires at a Novelis facility in New York during 2025 and expects to spend an additional US$1bn on imported aluminium.
The carmaker petitioned US government officials for relief from aluminium tariffs until the damaged plant returns to full service, according to people with knowledge of the conversations who spoke to the Wall Street Journal.
The administration of US President Donald Trump has denied these requests from Ford and other manufacturers.
UK Seafood Federation: Strengthening Sustainable Food Supply
A trade body representing seafood processors and traders has committed to supporting a Defra initiative targeting public sector food procurement across England.
The UK Seafood Federation announced its backing for the programme in April 2026.
The initiative centres on grant funding for local authorities to improve sourcing operations for public services including schools and hospitals.
According to Defra, the public sector spends nearly £5bn (US$6.75bn) annually on food and catering.
