Iran War Surges Oil, Plastic Prices Double-Digit

Fossil fuel-based plastics are highly sensitive to energy price movements, with crude oil rising from $67 to $98 per barrel since the conflict escalated in late February, as reported by CNN. The Middle East accounts for roughly 25% of global plastic exports, exacerbating logistical disruptions.

Data from Plastics Exchange shows resin prices surged double-digits over the past 30 days, with Michael Greenberg, CEO, noting the largest monthly polyethylene price increase in 25 years. Higher packaging costs will feed into food prices within two to four months, while the automotive sector will see impacts in less than a year due to longer-term contracts.

Manufacturers will adjust packaging designs or use thinner materials in the near term, as switching to alternatives is difficult. If oil prices remain elevated, consumers will feel the impact for one to two years, even if the conflict subsides sooner.