Iran War Fuels Rise in Petrochemical Product Costs

Rising oil prices triggered by the war in Iran are rippling through global supply chains, increasing production costs for thousands of everyday consumer products derived from petrochemicals. Eight weeks into the conflict, which began with attacks by the United States and Israel, manufacturers report material expenses climbing 10 to 30 percent, with higher retail prices likely to follow for items ranging from toys and clothing to medical supplies.

The disruptions stem from constrained oil shipments from the Middle East, a key region for global petroleum exports. Crude oil, refined into fuels and chemicals, forms the basis for synthetic materials like polyester, nylon and adhesives used in over 6,000 products, according to the U.S. Department of Energy. While 85 percent of oil consumption powers vehicles and aircraft, the remaining portion fuels industries producing plastics, rubbers and packaging. Gasoline prices have surged nationwide, pushing up airfares and the cost of trucking goods like food and furniture. But the war's effects extend beyond fuel, as refineries convert hydrocarbons into building blocks such as ethylene and propylene for everything from computer keyboards...