The war in Iran is producing effects far broader than most observers realize. The halt in Chinese exports of sulfuric acid risks being overshadowed by louder, more telegraphed shifts — yet Beijing’s decision is anything but marginal for the world economy. It strikes metals and fertilizer markets that were already strained by the fallout of the Middle East conflict.
China cuts sulfuric acid exports because of the Iran war
China is one of the world’s leading exporters of sulfuric acid, and the largest producer overall. But to keep its massive output running, it relies almost entirely on imported sulfur: domestic supply does not cover internal demand, let alone the surplus needed for trade. The Iran war has now upended that supply chain — as it has for many other countries.
The Middle East, and especially traffic through the Strait of Hormuz, is a chokepoint for raw materials the rest of the world cannot do without, and sulfur is no exception. In 2025, half of global sulfur supply came from the Middle East, and much of it flowed straight to China, which used it primarily to make sulfuric acid. The disruptions from the Iran conflict and the pressure on Hormuz have forced Beijing to sharply scale back the imports it had grown accustomed to.
China has turned the constraint into an opportunity. By protecting domestic supply, it simultaneously widens the gap with its trading partners. If Beijing has less sulfur than usual and must shut down exports to preserve its own stockpile, many other countries will struggle even to meet their domestic needs — countries that counted on Chinese shipments. Given current production levels and estimated reserves, this looks less like a survival move and more like a strategic one.
Beyond putting importers in a bind and forcing them to scramble for alternatives, Beijing can now extend its lead in every sector that depends heavily on sulfuric acid: mining, agriculture, food security, electronics, and defense.
In short, the Iran war has triggered a raw-materials crisis, and China has passed the bill on to the world’s biggest importers. The ban on sulfuric acid — a byproduct of copper and zinc smelting — has multiplied the trade shock, and the next wave will move well beyond imports themselves.
The sulfuric acid domino effect
China has effectively transmitted the shock it absorbed — the cut in sulfur supply — by halting its own exports of the finished acid. For industries in the Americas, Africa, and Asia, that means losing a meaningful chunk of their procurement. Europe is not a direct victim of Beijing’s move, since it sources elsewhere and consumes comparatively little, but it will not stay sheltered for long.
The shortage will touch everyone once the world’s biggest producer stops supplying. Europe in particular could feel the squeeze through its imports of goods that depend on sulfuric acid: chemical production, metals processing, oil refining, textiles, automotive, paper, and especially fertilizers all rely heavily on it. Any sustained drop in supply will set off a damaging domino effect — at least until new equilibria emerge.
Editor’s note
This article was originally published in Italian on money.it by Ilena D’Errico on May 17, 2026 as «La Cina ha interrotto le esportazioni di acido solforico. C’entra la guerra in Iran». It has been translated and adapted for an international audience by the Money.it International desk.
