One of the world’s largest petrochemical facilities in Saudi Arabia halted production as the Middle East conflict disrupts supply chains and energy operations in the region.

Sadara Chemical Co. said the temporary shutdown had been completed at its plant in the kingdom’s Jubail petrochemical hub and that it couldn’t provide an estimate for when output would resume. The facility is a $20 billion venture between Saudi Aramco and Dow Chemical Co.

Any return of production is “contingent on domestic and international factors,” Sadara said in a statement. The company could not be immediately reached for further comment.

The halt is the latest example of how the Iran war is impacting energy operations, with the Strait of Hormuz — which handles about a fifth of the world’s oil and liquefied natural gas — still all but blocked.

“I think we will see more shutdowns of petrochemical plants in the Middle East for the same reasons — stocks will be building down the manufacturing chain,” said Joseph McDonnell, an oil analyst at consultant Energy Aspects.

The Iran conflict has rattled global chemical markets, with producers in the Middle East and Asia among the hardest hit. Several companies have declared force majeure as the supply of feedstocks — particularly crude oil and naphtha — has been squeezed. Some 30% of global ethylene supplies could be disrupted due to the war, BNEF estimates show.

Saudi Arabia has been forced to cut its oil output, while a pipeline connecting to the kingdom’s western ports — allowing crude to circumvent Hormuz — is now at full capacity, a person familiar with the matter said at the weekend.

The Sadara plant can produce about 3 million tons of plastics and chemicals each year, supplying sectors from autos and construction to packaging. Aramco Chief Executive Officer Amin Nasser has described it as a flagship project, allowing the kingdom to extract more value from its oil and gas. Dow has said it’s one of the world’s largest integrated chemical facilities.

Written by: Alex Longley, Jack Wittels, and Marilen Martin @Bloomberg

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