Markus Kamieth, CEO of BASF, has issued warnings regarding the economic repercussions of the war in Iran, stating that a deceleration of the global economy is unavoidable and that growth is expected to decline almost everywhere. He emphasized that these effects will continue to preoccupy the industry for an extended period, potentially beyond the year 2026.
Furthermore, Kamieth predicts that the scarcity of oil and gas will fuel rising inflation. Since much of the country’s energy consumption still relies on these sources, he noted that prices are likely to remain elevated even if the conflict were to end tomorrow, because the underlying system will take a long time to return to normal.
Despite the global challenges, the BASF CEO provided assurances regarding the company’s own stability. He stated that, for the time being, the company does not face any raw material supply difficulties, confirming that it is currently supplied with vital materials globally, at least for the first half of the year. He highlighted that the company’s sheer size and global operational footprint make it highly robust. This stability is further supported by the fact that BASF itself is a raw material trader, allowing it to react quickly and benefit its customers.