One conflict. One strait. Your entire lubricant supply chain at risk.
The Strait of Hormuz — a 21-mile passage in the Persian Gulf — carries roughly 20% of the world's oil every single day. Since the Iran–USA conflict escalated in early 2026, that passage is effectively closed. Iranian drone attacks on commercial vessels, war-risk insurance clauses, and halted transit have choked the artery that feeds the global lubricant supply chain at its source.
This matters to you because lubricants begin as crude oil. Crude becomes base oil. Base oil becomes the finished product in your machinery, your fleet, your production lines. Disrupt the crude flow, and the entire lubricant supply chain tightens — from the refinery all the way to your warehouse shelf.
HOW THE LUBRICANT SUPPLY CHAIN ACTUALLY WORKS
From crude oil to your machinery: the full lubricant supply chain
To understand why this crisis is so severe, it helps to see how a lubricant is actually made. The lubricant supply chain is longer and more fragile than most people realise — and it is exposed at multiple points, not just one.
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01 |
Crude oil |
Extracted from the ground. The Middle East holds the largest reserves. |
|
02 |
Refining |
Crude is refined into base oil — the primary raw material in every lubricant. |
|
03 |
Base oil |
Group I, II or III base oils are blended with chemical additives. |
|
04 |
Additives |
Performance chemicals (5–25% of the final product) that define viscosity, protection, and lifespan. |
|
05 |
Blending |
Base oil + additives are blended into finished lubricant at production facilities. |
|
06 |
Logistics |
Finished product ships to distributors and end customers worldwide. |
Every single one of these six steps is under pressure right now. The Strait of Hormuz disruption doesn't just affect crude oil at step one — it blocks refined base oil exports from Iran, disrupts additive raw material transit at step four, and drives up freight costs at step six. The entire lubricant supply chain is being squeezed simultaneously.
Iran produces roughly 1 million metric tonnes of Group I base oil per year — and nearly all of it exports through the Strait of Hormuz. That supply is now blocked. The lubricant supply chain shock is not coming. It is already here.
With Iranian base oil off the market, buyers are scrambling for Group II and III alternatives — driving up prices across all base oil categories simultaneously. Add to that the disruption to chemical additive supply routes, freight cost spikes, and war-risk surcharges on logistics, and you have a lubricant supply chain under pressure from every direction at once.
Most businesses are only now realising how exposed their lubricant supply chain truly is. Their supplier buys base oil from the Gulf. Their additive raw materials transit through the same disrupted corridors. Their freight rates have doubled. And they have no buffer, no backup, and no clear timeline for when it normalises.
That is not a supplier problem. That is a supply chain architecture problem. And it has a solution.
THE KRAFTMAX SOLUTION
A lubricant supply chain built to outlast any crisis
Kraftmax didn't scramble when the Strait closed. We were already positioned for exactly this scenario with trustable base oil supply channels and the strategic geopolitical location of Türkiye.
01 Supply chain routing that bypasses the Gulf entirely
Our base oil procurement runs through diversified European Group II and III refineries and non-Gulf Asian suppliers. When the Strait of Hormuz closes, our lubricant supply chain stays open. No rerouting. No allocation notices. Just continuous supply.
02 Forward inventory that absorbs price shocks before they reach you
We don't buy on the spot market. Kraftmax maintains pre-purchased inventory positions that insulate customers from the sudden 10–15% price surges rippling through the lubricant supply chain right now. Your cost stays predictable. Your budget stays intact.
03 Full additive specification — no compromises, no substitutions
The lubricant supply chain crisis hits additives just as hard as base oil. Kraftmax's secured additive supplier relationships and stocked inventory mean your products arrive with the same full specification every time!
Your lubricant supply chain, your orders, and your clients should be secured!
The businesses switching to Kraftmax aren't reacting to a crisis, they're removing one. Contact our team to dicuss about securing your lubricant supply chain today!
FAQ
These are the questions procurement managers, fleet operators, and operations directors are asking right now. If you're wondering the same things, here are direct answers.
1. Why are lubricant prices rising if I buy from a European supplier?
Because base oil is a globally traded commodity. Even if your supplier sources from Europe, they compete for the same Group II and III base oil that buyers displaced from the Gulf are now chasing. When Gulf supply disappears, the entire global base oil market tightens and prices rise across all regions — not just the Middle East.
2.Can I just switch to a synthetic lubricant to avoid supply chain issues?
Switching to a synthetic or semi-synthetic lubricant is one of the smartest moves you can make right now — but only if your supplier has the stock. Synthetic lubricants use predominantly Group III base oil, which has more diversified production outside the Gulf. They also last longer, which reduces your total consumption and therefore your total exposure to the disrupted supply chain. Kraftmax's synthetic range is in stock and available now.
3.How quickly can Kraftmax supply me if I switch today?
Kraftmax maintains forward-purchased inventory specifically to serve customers in exactly this situation. Lead times depend on your location and volume, but we are actively supplying customers who have switched from disrupted suppliers. Contact us directly and we will provide you with all the details needed.
4.How can I contact Kraftmax Lubricants?
You can contact us through our whatsapp number, social media channels, and our mail.