The year started of with a bang as the United States of America initiated a military operation against Venezuela on the 3rd of January; the goal being to arrest the then sitting prime minister of the country, Nicolás Maduro, on charges of narco-terrorism. Less than two months later, on the 28th of February, the United States initiated yet another military operation, albeit on a far larger scale this time, against Iran. This action provoked a response from Iran which has now developed into a full-scale war between the two nations and their allies in the region, with no discernible end in sight.
The war in and around the Persian Gulf has, among other things, resulted in the Strait of Hormuz being effectively blocked off. Around 20% of the worlds’ oil and gas production normally transit through this strait, which has now been disrupted extensively. Naturally, energy prices saw a sharp increase as exports from the region effectively ground to a halt, affecting southeast Asia particularly hard as they are heavily dependant on oil exports from the region.
Europe, on the other hand, is less dependent on both oil and gas imports from the region, thanks in part to the lessons that have been learnt since the 2022 energy crisis. Diversification efforts, both in import sources and energy sources, have undoubtedly positioned Europe to better deal with scenarios such as the playing out in the Strait of Hormuz. Nevertheless, preparedness can only help with mitigating the current situation so much, as the disruptions have been so severe that pretty much every industrial sector have been adversely affected.
The agricultural sector in particular has been hit extra hard, as it is not only the flow of energy that has been disrupted—but also that of artificial fertilizer. The result is a double whammy for farmers in the EU as both prices and availability for diesel and fertilizers have increased sharply—in a time where profitability is already strained to the limit for many farmers. As such, the question of self-sustainability has not only become a hot topic amongst many European farmers, but also amongst politicians as the question has in many ways also become a topic of national security.
So how does this situation translate to the used industrial equipment market of Europe? Assuming the current situation remains more or less the same, then the short-term demand for high-quality objects will most likely increase, especially so for objects in the transport, agriculture, and construction sectors—along with an appropriate increase in price. Refurbishment and fleet replacement delays, however, will lower the supply of said high-quality objects as its owners aim to extend the lifecycle of their objects rather than putting them up on the second-hand market after a few years of usage.
Refurbishment, along with spare part procurement and other lifecycle services, is poised to become increasingly more central to the heavy machinery ecosystem—especially so if the current situation in the Strait of Hormuz continues on unabated.
For a more detailed look at the past, present and future European market trends, including a more thorough market prognosis that covers all kinds of industries and product groups, please refer to our Market Trend Reports available at the Asset Valuation Services shop.
August 2026
Max Ellgren
