Thai rice exports to the Middle East have stopped as the escalating war disrupts shipments to the country’s biggest market for the grain. The pause follows a surge in conflict that has cut off sea lanes and air routes, leaving exporters scrambling to find alternative buyers.

Farmers across Thailand are feeling the squeeze as rising input costs and a sudden drop in overseas orders compound the shock. With the Middle East no longer a reliable buyer, producers face higher storage costs and uncertain cash flow, tightening the margins that already hover near zero.

The halt reverberates through Thailand’s export chain, forcing traders to seek new markets while shipping costs climb. Investors watching the grain sector will note that a sudden loss of a key buyer can depress prices and squeeze profit margins, potentially prompting a shift toward domestic consumption or alternative export destinations.

For Thai exporters, the disruption underscores the fragility of relying on a single foreign market. Diversification strategies, such as targeting Southeast Asian buyers or exploring new trade agreements, may mitigate future shocks. Meanwhile, the government may need to step in with price support or logistical aid to keep the sector afloat.