Recent events in the Middle East have raised concerns about their potential impact on North Carolina’s international trade, according to an April 9 article. Disruptions in the region, especially those affecting the Strait of Hormuz—a key waterway between Oman and Iran—are at the center of these worries. The strait is a vital route for global energy supplies, with about 27% of maritime crude oil and petroleum products and 20% of liquefied natural gas passing through it.
The significance of this situation lies in its effect on global supply chains. As traffic through the Strait faces interruptions, prices for refined petroleum products such as diesel, gasoline, and jet fuel have risen. Other materials like fertilizers and helium are also facing supply restrictions, which could impact sectors including agriculture and semiconductor manufacturing.
In 2025, North Carolina exported around $1.2 billion worth of goods to seven countries in the affected region: United Arab Emirates (UAE), Saudi Arabia, Iraq, Qatar, Kuwait, Oman, and Bahrain. The UAE was the largest destination with $434 million in exports from North Carolina. Pharmaceutical products led these exports at $523 million last year.
Imports from this region totaled approximately $202 million in 2025 for North Carolina businesses. Saudi Arabia was the main source at $81 million. Organic chemicals made up most imports ($69 million), supporting industries like pharmaceuticals and plastics production within the state.
Despite relatively modest direct trade ties to these countries—exports to them account for just 2.7% of all state exports—the broader economic effects may still be felt locally due to global price increases for oil and other commodities that affect everyday goods. Industries such as agriculture and chemical manufacturing could face increased costs as a result.
The article notes that indirect disruptions are also possible; shortages or delays elsewhere could slow production abroad but have downstream effects on U.S.-based sectors like electronics manufacturing or data center construction. With recent years already marked by pandemic-related disruptions and geopolitical tensions elsewhere, ongoing developments in the Middle East add another layer of uncertainty that officials say will require close monitoring.
