Sadara Chemical Company, the $20bn joint venture between Saudi Aramco (Tadawul: 2222) and Dow Chemical Company (DOW), has halted all production at its Jubail complex in eastern Saudi Arabia indefinitely without a shot being fired by Iran.

The company announced it was stopping production, citing “uncertainty over maritime access to feedstock supplies” as the reason for the stoppage. As industrial assets in both Iran and the wider region increasingly come under fire, the shut-down of Sadara highlights the spreading economic chaos caused by the war that is affecting essential supply chains and impacted industrial assets, even if they are not attacked.

The company said the restart timeline was “contingent on domestic and international factors”, due to the shutdown of the Strait of Hormuz. Industry participants said the language as an acknowledgement that operations were impossible until access to international markets resumed, according to reports.

Sadara operates one of the world’s largest integrated petrochemicals facilities, with an ethylene cracker capacity of 1.5mn tonnes per year and total output exceeding 3mn tonnes across 26 downstream units. These include 750,000 tonnes of polyethylene for packaging and pipes, 350,000 tonnes for films and coatings, and 360,000 tonnes of ethylene oxide used in detergents, alongside propylene derivatives, polyols and isocyanates supplying industries from construction to automotive manufacturing, according to Shanaka Anslem Perera, an independent analyst.

Despite no reported physical damage to the plant, operations have ceased due to the inability to secure naphtha feedstock shipments, a key feedstock, as the crisis virus continues to spread down supply chains.

“This is what economic chokepoint warfare looks like when it works,” Perera said, describing a scenario in which logistical constraints rather than direct military action can also render critical infrastructure inoperable.

Asian markets have been the first to feel the effects. China, India, South Korea and Taiwan — major importers of Gulf petrochemical products — are already experiencing supply problems. Polyethylene spot prices in Asia and Europe rose by 10% to 15% within hours of the shutdown announcement, while downstream industries including construction, automotive and consumer goods face lengthening lead times.

The shutdown is expected to weigh on the 2026 financial performance of both Saudi Aramco and Dow, given Sadara’s central role in global supply chains. Built over a decade at a cost of $20bn, the complex underpins production networks spanning more than 50 countries.

Iran did not fire a single missile at Jubail, but evolving controls over maritime access — including payment mechanisms, insurance segmentation and selective transit permissions — have been as effective as firing missiles at the plant in shutting down a key economic asset.

“The plant is intact. The plant is silent. And the molecule that would make it run is sitting in a tanker that cannot move,” Perera said.