It’s not just gasoline. U.S.-Iran war could drive prices higher for many products derived from petroleum.

The impact of the Iran war on everyday consumer products is far-reaching and unexpected. One industry that has been particularly affected is the toy industry, where even plush toys like Snuggle Glove and Bizzikins are feeling the strain. These toys are made with polyester and acrylic, synthetic fibers derived from petroleum, and with oil shipments from the Middle East being constrained, suppliers are facing increased material costs.

CEO Ricardo Venegas of Aleni Brands in Fort Lauderdale, Florida, has noticed a 10% to 15% increase in material costs just three weeks after the war started. This demonstrates how deeply oil is ingrained in our society, affecting not only fuel prices but also the prices of everyday items. From computer keyboards to tennis rackets, pajamas to crayons, petroleum derivatives are used in over 6,000 consumer products, according to the U.S. Department of Energy.

The war is also impacting the supply of helium and aluminum, essential materials for semiconductor chips and medical equipment. As a result, consumers are seeing higher prices for gasoline, airfares, and various goods transported by diesel trucks. Crude oil is not just used for fuel but is also converted into chemicals, plastics, and rubber, impacting production costs across industries.

Andrew Walberer, a partner at Kearney, explains that materials account for a significant portion of production costs for manufacturers, such as those in the clothing and footwear industry. If oil prices remain above $90 per barrel, cost pressures will continue to rise throughout the supply chain.

Footwear Distributors and Retailers of America CEO Matt Priest predicts a 1.5% to 3% increase in shoe prices due to higher petroleum costs. U.S. shoe and clothing manufacturers are already feeling the effects, with the price of polyester textiles increasing by 10 to 15 cents per garment. As a result, consumers may see higher prices for shoes and clothing by late summer and fall.

Some businesses are trying to mitigate these rising costs. Lisa Lane, founder of Rinseroo, has tripled her monthly orders from China to offset a 30% increase in costs. Similarly, Gentell, a wound care products company, plans to raise prices by 15% due to higher material costs. These companies are navigating the challenges of the war-induced price hikes while trying to maintain value for their customers.

The future remains uncertain, with businesses unsure if prices will decrease once the war ends and oil shipments stabilize. The impact of the Iran war on consumer products serves as a reminder of the interconnectedness of global supply chains and the far-reaching consequences of geopolitical conflicts on everyday items.