Bitumen Prices Surge Amid Iran-Israel Conflict – June 2025

The ongoing military conflict between Iran and Israel has caused serious disruptions in the global bitumen market. Iran, a major exporter of bitumen, is experiencing a near-total halt in exports due to refinery shutdowns, port closures, and logistical paralysis. These developments have triggered a sharp increase in bitumen prices across Asia, the Middle East, and parts of Europe.

Refineries in key Iranian cities such as Bandar Abbas and Arak have partially or completely ceased operations. Storage depots are nearly empty, and Iranian suppliers have issued multiple force majeure notices, canceling or delaying deliveries. As a result, international buyers who relied on Iranian bitumen—particularly from India, East Africa, and Southeast Asia—are now scrambling to source alternative supply.

Other countries price

Prices have responded immediately. In Singapore and South Korea, FOB bitumen prices rose to $400–$415 per metric ton, reflecting an increase of over 10% within a week. In the UAE and Bahrain, prices have reached $430 or more per metric ton, while European ports are now seeing prices nearing $480. The price jump is being driven not only by supply shortages but also by rising shipping and insurance costs due to the threat of further escalation in the Persian Gulf.

Looking ahead, the situation remains highly volatile. If the conflict expands or if shipping through the Strait of Hormuz is affected, analysts warn that prices could spike above $500 per metric ton. Traders are already demanding higher premiums for guaranteed delivery, and many buyers are attempting to lock in supply contracts early to avoid further cost increases.

The bitumen market is expected to remain unstable for the next several months, and buyers are advised to monitor developments closely and diversify their sources wherever possible.