The leather and footwear industries are currently among the most affected by the crisis in West Asia. Being heavily dependent on petrochemical-based components, these sectors are struggling with both extreme price hikes and supply chain delays. Israr Ahmed, a prominent leather exporter, noted that the potential for a total halt in movements through the Gulf of Hormuz is creating a sense of panic among manufacturers. Furthermore, the industry is facing a “demand-side” risk; as global inflation rises due to energy costs, there is a significant chance that consumer demand in key markets like Europe and the Middle East will drop, leading to a surplus of unsold inventory and financial strain on exporters.