From oil to saffron: how US-Iran conflict is rattling Chinese investors

The supply of oil and other essential commodities may be grabbing the headlines as the US-Iran conflict escalates, but the ripple effects are being felt far beyond energy markets – all the way to the global supply of the saffron used in footbath packs and heat patches.Chinese retail investors have been peppering listed companies with questions about how disruptions tied to the conflict could affect everything from fertiliser imports to the pharmaceutical products containing the prized spice.“Given that Iran accounts for more than 90 per cent of global saffron exports, which have now been suspended, will your company continue producing saffron-containing foot-bath packs and heat patches?” one investor asked Renhe Pharmacy, a Jiangxi-based pharmaceutical company listed in Shenzhen, on an investor interaction platform.“Does the company have any saffron raw-material inventory on hand? If so, how long can it sustain production?” the investor added.“Please call our customer service hotline,” answered the company.The exchange illustrates how the Middle East conflict is reverberating far beyond energy markets, unsettling businesses and investors thousands of miles from the war zone.