The U.S.-Israeli war in Iran has had a tangible effect on the economy in the Middle East, and the conflict is also making things more expensive for Americans at home. Increasing oil prices resulting from the war have cascading consequences, and while things like gasoline are most obviously affected, other products are also getting pricier.
Clothes Supply chain issues are raising the cost of oil’s building blocks called petrochemicals. Six of these petrochemicals are the “major foundations of plastics and synthetic materials like nylon and polyesters,” said The Associated Press. And when petrochemicals become more expensive, it is often accompanied by a spike in clothing prices.
To make a button-down shirt, materials “account for 27% to 30% of the cost a manufacturer incurs,” said Andrew Walberer, a partner at the global management consultancy Kearney, to the AP. Experts are “warning consumers to budget for price increases of 10% to 15%” in clothing, said the South China Morning Post.
Cosmetics The war in Iran is “seeping into the cosmetics supply chain, pushing up the cost of everything from plastic jars to lipstick tubes to transport,” said Reuters. It’s “reminding the beauty industry that even a tub of face cream depends on fragile global trade routes.”
The most notable sector affected is the Korean beauty industry, which has a large following in the U.S. Due to the unstable cost and raw material prices of petrochemicals, the unit prices of most products will “inevitably be increased,” said cosmetics company Luxepack Korea in a press release, per The Washington Post.
Toys Like clothes, many stuffed plush toys are made with “polyester and acrylic, synthetic fibers derived from petroleum,” said the AP, so rising prices could similarly impact the toy industry. Suppliers in China have notified Aleni Brands, the company behind popular plush lines like Bizzikins, that “getting the materials already was costing them 10% to 15% more.”
Notable production hurdles are also being experienced by a “cluster of manufacturers in Shantou, a city located 190 miles northeast of Hong Kong, which produces a third of the world’s toys,” said The New York Times. Other child-adjacent products, including crayons, are additionally facing shortages due to petrochemical supply chain issues.
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