While global attention has remained fixed on energy supplies and oil tankers, a far more ancient commodity is currently caught in the crossfire of the modern military conflict between the United States and Iran. Frankincense, an aromatic resin that has defined Middle Eastern trade routes for millennia, is seeing its global supply chain snarled by wartime blockades and escalating logistics costs.
Harvested from Boswellia trees across the Arabian peninsula and the Horn of Africa, frankincense has long been a cornerstone of regional exports, predating the era of crude oil. Today, this prized resin—once used in the burials of pharaohs and offered as a gift to the baby Jesus—is facing the same precarious shipping environment as the tankers navigating the Strait of Hormuz.
The disruption has moved beyond the docks of the Middle East and is now being felt by businesses in the West. A recent report from the Institute for Supply Management (ISM), which surveys U.S. Businesses, highlighted the ripple effects of the conflict on specialized imports. Wholesalers have noted that U.S.-Israel military operations against Iran have created significant uncertainty for Omani frankincense imports, with rising war-risk surcharges impacting everything from sea freight to air transport.
A 6,000-Year Legacy Under Threat
The trade of frankincense is an industry with deep historical roots. According to Anjanette DeCarlo, an adjunct professor at the University of Vermont, the trade is well over 6,000 years old. For centuries, the resin traveled the Silk Route into China and was transported throughout Europe, serving as a vital link between the Mediterranean world and the east and south.
Historically, the value of the resin was reflected in its use in the most sacred and royal of settings. It was burned as incense in temples and churches globally and played a role in ancient Egyptian funerary rites, including the burial of King Tut. This ancient network of land and sea paths established the region as a global trade hub long before the discovery of petroleum.
In the modern era, the application of frankincense has evolved. While it maintains its traditional use in religious ceremonies, thousands of tons are now exported annually from Oman, Yemen, and the Horn of Africa to serve as ingredients in perfumes, anti-aging creams, and health supplements.
The Impact of Modern Military Conflict
The current war between the United States and Iran has introduced a layer of volatility to a supply chain that relies heavily on the stability of the Strait of Hormuz. Given that frankincense is primarily harvested from Boswellia trees in northern Africa and the Arabian peninsula, its export routes overlap with the most contested waters in the Middle East.
The consequences of the conflict are manifesting in several critical ways:
- Wartime Blockades: Shipments of frankincense are currently facing blockades similar to those affecting oil tankers, restricting the flow of goods out of the region.
- Increased Logistics Costs: The threat of closure of the Strait of Hormuz has led to rising war-risk surcharges, which increase the cost of transporting the resin.
- Air Freight Pressure: The instability has pushed some logistics toward air freight, though even these routes are feeling the pressure of regional instability.
Steve Miller, who oversees the ISM survey, suggests that these disruptions are symbolic of the “unintended consequences” of the war. He notes that when analyzing deep supply chains, the conflict often impacts unexpected commodities that the general public might not associate with military geopolitics.
Sourcing and Production Challenges
The production of frankincense remains largely traditional. While a few Boswellia trees are cultivated, the majority of the resin is tapped from trees growing wild in the Arabian peninsula and the Horn of Africa. This reliance on wild harvesting makes the supply chain particularly vulnerable to regional instability, as the labor and transport required to collect the resin from remote areas can be easily disrupted by conflict.
For wholesalers and manufacturers in the U.S. And Europe, the uncertainty is not merely about the availability of the product, but the predictability of the cost. As military operations continue, the “significant uncertainty” mentioned by importers suggests that the price of health supplements and luxury perfumes containing the resin may fluctuate based on the security situation in the Persian Gulf.
The current situation underscores the fragility of global trade, where a 6,000-year-old industry can be brought to a standstill by modern naval blockades and geopolitical tensions. For more information on regional trade disruptions, readers can monitor reports from the Institute for Supply Management regarding business surveys and supply chain volatility.
As the conflict evolves, the next critical checkpoint will be the continued monitoring of shipping lanes and war-risk surcharge adjustments by regional logistics providers.
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