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- By Vaidika Thapa
- Fri, 24 Apr 2026 04:02 PM (IST)
- Source:JND
Rising tensions in the Middle East, caused by conflict between the United States and Iran have already disrupted global supply chains for key commodities like crude oil, aluminium, and rice. Now the impact is said to be spreading further, affecting the textile and clothing industry. As the conflict centres around the Strait of Hormuz, a vital shipping route, concerns are growing over its potential impact on other industries as well.
Global Energy Shock From Iran Conflict Hits Fashion
According to the news agency Reuters report, the surge in fossil fuel prices since the US-Iran conflict is squeezing polyester suppliers. As a result, garment makers across India and Bangladesh are likely to push up costs for major fast-fashion retailers like Zara and H&M. The cost of raw materials used to make polyester has increased sharply.
The report noted that manufacturers like Filatex in India, are paying around 30 per cent more for purified terephthalic acid (PTA) and monoethylene glycol (MEG), materials needed to make yarn. Additionally, increasing prices from Chinese suppliers, the world's biggest polyester producer, are adding to the pressure, affecting fabric production. Textile companies in hubs like Surat are struggling with higher costs of chemicals, dyes, and fuel.
Some factories have reportedly reduced production or shut operations for a few days each week to mitigate the situation. Radheshyam Textile owner Kaushik Dudhat told Reuters, "Our daily production was 10,000 metres per day before the war started, but it has fallen to 3,500 to 4,000 metres per day." Dudhat stated that steep price increases would force him to raise his own prices by around 15 per cent, a hike his customers, mainly clothing traders, would not accept. The company weaves polyester.
Zara, H&M Prices May Rise
Similarly, Bangladesh, a major clothing manufacturer, is also facing higher costs, even though they mainly produce cotton garments. The price of polyester sewing thread has increased. Since polyester is made from oil-based materials, higher fuel and petrochemical costs are pushing production expenses for manufacturers. These rising costs are expected to affect global fast-fashion brands like Zara and H&M, which rely heavily on Asian suppliers.
Sneakers Next In Line
Also, the impact is further expected to reach footwear as well. This is because materials used in sneakers are made from petrochemicals, such as ethylene-vinyl acetate (EVA), which are commonly used in shoe soles. According to a Reuters report, citing industry experts, the effect is widespread, no matter where shoes are made. As materials are becoming more expensive, the cost of making sneakers is also rising, ultimately leading to higher prices in stores.