Iran War Disrupts Supply Chains, Driving Up Prices for Medicines and Condoms

The war that began in late February after US-Israel airstrikes on Iran prompted Tehran to target vessels in the Strait of Hormuz, blocking a route that carries about 20 % of global crude oil, LNG and petrochemical feedstocks, raising freight rates.

Transport Topics

Manufacturers face 40-50 % higher stock costs and doubled freight times. In England, chemists have lifted drug prices by 20-30 % and wholesale paracetamol prices have doubled. Malaysia’s Karex, maker of over five billion condoms a year for Durex, Trojan and the NHS, plans a 20-30 % price rise as demand rises ~30 % and shipments now take nearly two months. Brent crude is about $100 per barrel, up from $70.

The Guardian

The National Pharmacy Association warns pharmacists are forced to charge higher prices and face occasional stockouts of paracetamol-based products, raising concerns about patient access.

The Independent

Karex reports raw-material costs have surged; despite enough inventory for the next few months, it will boost output to meet a 30 % demand rise and prepare for further price hikes if the strait stays blocked.

BBC News

The Department of Health and Social Care says it is monitoring the situation, using buffer stocks and alternative procurement. NPA chair Olivier Picard highlighted the wholesale price spike for paracetamol and urged against panic-buying. Karex CEO Goh Miah Kiat confirmed the price adjustment and a production boost. Chancellor Rachel Reeves said the conflict is not Britain’s war but that keeping household costs down remains a priority.

The Guardian

Pharmacists argue that rising costs and supply uncertainty threaten access to essential medicines and call for accelerated domestic manufacturing. Independent Pharmacies Association CEO Dr Leyla Hannbeck warned that “millions rely on daily” essential drugs, underscoring the risk of shortages if price pressures persist.

The Independent

Pharmacists report significant price hikes and occasional stockouts, while the Department of Health maintains that overall medicine supply remains largely intact; independent verification of long-term supply-chain resilience is lacking.

The Independent

• “the [wholesale] price had doubled” — Olivier Picard, NPA Chair

The Independent

• “The situation is definitely very fragile, prices are expensive … We have no choice but to transfer the costs right now to the customers,” — Goh Miah Kiat, CEO, Karex Bhd

The Guardian

• “A Department of Health and Social Care spokesperson said: “We are monitoring the situation closely and there is currently very limited disruption to medical product supply from the conflict in the Middle East.” — Department of Health and Social Care spokesperson

The Independent

• “This is not our war, but it is pushing up bills for families and businesses. That’s why it’s my number one priority to keep costs down,” — Rachel Reeves, UK Chancellor

The Guardian

The UK will expand domestic medicine production, while Karex aims to increase output and monitor raw-material markets.

The Guardian