Anabelle Colaco
23 Apr 2026

NEW YORK CITY, New York: The impact of the Iran war is spreading far beyond fuel prices, with rising oil costs now pushing up production expenses for a wide range of everyday consumer goods, from clothing and toys to medical supplies.

Manufacturers say disruptions to oil shipments from the Middle East are already increasing the cost of petroleum-based materials used in thousands of products. As a result, consumers could soon see higher prices across sectors not typically associated with energy markets.

Even soft toys are being affected. A Fort Lauderdale-based manufacturer said suppliers in China have raised prices for synthetic fibers such as polyester and acrylic, both derived from petroleum, by 10 percent to 15 percent within weeks of the conflict beginning.

"I think this situation demonstrates how much oil permeates throughout our system, and we can't get away from it," said Ricardo Venegas, CEO of Aleni Brands. "Who would have thought that the price of a toy would have a direct relationship with oil?"

Petrochemicals derived from oil and natural gas are used in more than 6,000 consumer products, according to the U.S. Department of Energy. These include computer keyboards, lipstick, tennis rackets, shoes, crayons, detergent, chewing gum, and medical supplies.

While higher petrol prices and airfares have been the most immediate effects of the conflict, analysts say the broader impact will be felt across supply chains. Oil is not only refined into fuel but also into chemicals, waxes, and materials used in plastics, rubber, and packaging.

With global supply disruptions now in their eighth week, companies are warning that higher production costs could soon be passed on to consumers.

Venegas said he plans to absorb rising material costs for now but may increase prices by early 2027 if the conflict continues for another three to six months.

Oil's role in manufacturing extends well beyond energy. About 85 percent of global oil consumption is used as fuel, but the rest is converted into petrochemicals that form the building blocks of synthetic materials, said Gernot Wagner, a climate economist at Columbia University.

These petrochemicals, including ethylene, propylene, benzene, and others, are used to produce plastics, nylon, and polyester, which in turn are used in products ranging from clothing and carpets to automobile parts and electronics.

Materials make up a significant share of manufacturing costs. Andrew Walberer of consultancy Kearney said materials account for about 27 percent to 30 percent of the cost of producing a typical shirt, with labor and operational expenses making up the rest.

Experts say sustained high oil prices could amplify these pressures. If crude oil remains above US$90 per barrel in the coming months, cost increases are likely to spread further through global supply networks.

In the footwear industry, where roughly 70 percent of materials are petrochemical-based, rising oil prices could lead to a 1.5 percent to three percent increase in retail prices by late summer and autumn, according to the Footwear Distributors and Retailers of America.

Clothing manufacturers are also seeing rising input costs. Polyester textile materials have increased from about 90 cents per kilogram before the conflict to $1.33 per kilogram, adding an estimated 10 to 15 cents to the cost of producing each garment, said Nate Herman of the American Apparel & Footwear Association.

Some businesses are trying to manage the impact by adjusting supply strategies. Lisa Lane, founder of Rinseroo, said she tripled her orders of hose components from China to avoid a projected 30 percent price increase.

The company uses petroleum-based materials such as polyvinyl chloride. Lane said she is exploring cost-cutting options but is reluctant to raise prices after doing so last year.

"We want to stay at that sweet spot where people want to continue to buy from us and feel like they're getting a good value," Lane said.

Other companies are preparing to pass on costs more quickly. Gentell, a manufacturer of medical supplies such as bandages and dressings, plans to raise prices by 15 percent as its costs rise by about 20 percent, driven in part by higher costs of petrochemical-based adhesives.

CEO David Navazio said demand for essential medical products is unlikely to fall, but warned that price increases may not reverse even if the conflict ends.

"In the past, I've seen transportation costs come down, but I've never seen prices of raw material come down," he said.