European Naphtha Daily Market Analysis / Middle East conflict drives prices higher / Petrochemical cracking margins decline sharply

Sep 14, 2026

The naphtha paper market spiked Sept. 10 in tandem with crude oil futures as the conflict in the Middle East escalated. Yemeni forces seized the Red Sea port city of Mokha, raising fears of a prolonged conflict that could disrupt flows through two of the world’s most critical maritime chokepoints, the Bab al-Mandab Strait and the Strait of Hormuz. With naphtha paper and physical prices soaring, players said petrochemical margins for cracking naphtha had been falling significantly. “This high flat price must be choking petchem margins everywhere, but [the] market is very concerned about the situation in Suez, so [it’s] all going up ... [with the] Houthis and also Hormuz,” a trading source said. As a result, gasoline blending remained the main demand driver for naphtha. “I believe gasoline is...

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