A major squeeze in global shipping routes and energy markets linked to the Iran war is now spilling into unexpected consumer products, with the world’s largest condom producer warning of possible sharp price increases in the coming months.
Karex, which manufactures billions of condoms annually, says its production costs have climbed fast due to disruption in supplies of oil-linked raw materials needed in its manufacturing process.
The company, as quoted by the BBC is now considering raising prices by as much as 30% or even higher if the situation in the Middle East continues to interfere with supply chains.
Chief executive Goh Miah Kiat spoke to Reuters and Bloomberg about the pressure facing the firm, while the BBC has reached out for comment.
The Malaysia-based manufacturer produces over five billion condoms each year and supplies global brands including Durex and Trojan, alongside public health systems such as the United Kingdom’s NHS.
The strain comes as global oil flows have been affected since Iran responded to US and Israeli airstrikes by threatening to strike ships moving through the Strait of Hormuz.
That corridor, which is now heavily restricted, is one of the most important shipping lanes in the world.
Roughly one-fifth of global crude oil and liquified natural gas, together with other petrochemical products, normally moves through the waterway.
Karex depends on materials derived from oil, including ammonia used in preserving latex and silicone-based lubricants, both of which have become more expensive and harder to secure.
At the same time, demand for condoms has risen by around 30% this year, while transport costs and delivery delays have made supply challenges worse, according to Goh.
"In bad times, the need to use condoms is even more because you're uncertain with your future, whether you'd still have a job next year," he told Bloomberg.
"If you have a baby right now, you'll have one more mouth to feed," he added.
The developments show how the Iran conflict, already shaking global energy markets, is now feeding into price pressures for everyday goods far beyond fuel.
The impact is also being felt in aviation, where economy air tickets have risen by about 24% on average compared to last year, according to recent data.
Fertiliser costs have also climbed due to shipping disruptions in the Gulf, while helium used in semiconductor production is becoming harder to source.
Bottled water manufacturers are reporting strain as they struggle with raw material shortages linked to transport delays.
Earlier this month, the United Nations warned that rising transport costs are likely to push up prices of sugar, dairy products and fruit.
Uncertainty around peace negotiations between the United States and Iran remains after President Donald Trump said he would extend a ceasefire until talks show progress.