Iran Conflict Causes Fossil Fuel Price Increases That Disrupt Polyester Supply Chains in South Asia, Threatening Fast-Fashion Retail Costs

Apr 25, 2026, 07:18

Introduction

A sustained increase in fossil fuel prices, as a result of the Iran war, has placed significant financial pressure on polyester producers and garment manufacturers in India and Bangladesh. This development could affect major fast-fashion retailers, including Zara and H&M, which rely on these supply chains.

Main Body

The conflict has disrupted petroleum markets, especially through the closure of the Strait of Hormuz, a key route for refined petroleum products. Polyester, which makes up 59% of global fibre production and is made from oil-based materials, is directly affected by these supply problems. Madhu Sudhan Bhageria, managing director of Filatex, one of India’s largest polyester yarn producers, reported that the company is now paying nearly 30% more for its key inputs—purified terephthalic acid (PTA) and monoethylene glycol (MEG). This cost increase is caused by price rises from Chinese suppliers and interruptions in Middle Eastern supply routes. Beyond the costs of raw materials, the energy crisis has also affected downstream processing. Avichal Arya, CEO of Bindal Silk Mills—a supplier of dyed and printed polyester fabrics to retailers such as H&M, Inditex (owner of Zara), Target, Walmart, and Ikea—stated that the cost of chemicals and dyes has risen “drastically.” Furthermore, a shortage of cooking gas, caused by the war, has led to the departure of migrant workers from Surat, a major textile hub in Gujarat, India. Arya noted that this loss of workers has made it difficult for the company to fulfil global orders efficiently. While the immediate financial burden is carried by suppliers and manufacturers, the pressure may eventually move down the supply chain to retailers. However, analysts note that retailers are currently protected from the full impact because of forward-buying practices, which provide a temporary protection against sudden market changes.

Conclusion

The Iran war has caused a cost and supply crisis in the polyester-dominated textile supply chain of South Asia, with raw material prices rising sharply and labour availability declining. Although fast-fashion retailers face no immediate cost increases, the ongoing nature of the disruption indicates that price adjustments may become unavoidable as forward contracts expire.

Vocabulary Learning

disrupted (v.)
interrupted or prevented from continuing擾亂；中斷
Example:The conflict has disrupted petroleum markets.
drastically (adv.)
in a severe and sudden way大幅度地；急劇地
Example:The cost of chemicals and dyes has risen drastically.
fulfil (v.)
to do or achieve what is needed履行；完成
Example:The loss of workers made it difficult to fulfil global orders.
sustained (adj.)
continuing for a long time持續的
Example:A sustained increase in fossil fuel prices has placed financial pressure on producers.
unavoidable (adj.)
impossible to avoid無可避免的
Example:Price adjustments may become unavoidable as forward contracts expire.

Sentence Learning

This development could affect major fast-fashion retailers, including Zara and H&M, which rely on these supply chains.
Non-defining relative clause with 'which' to add extra information about the retailers, separated by commas.非限制性關係從句使用'which'補充說明零售商信息，以逗號分隔。
Polyester, which makes up 59% of global fibre production and is made from oil-based materials, is directly affected by these supply problems.
Combines a non-defining relative clause describing polyester's characteristics and passive voice ('is made from', 'is directly affected') to focus on the material and the impact.結合非限制性關係從句描述聚酯特性，並使用被動語態（'is made from', 'is directly affected'）強調材料及所受影響。
This cost increase is caused by price rises from Chinese suppliers and interruptions in Middle Eastern supply routes.
Passive voice ('is caused by') highlights the cost increase as the subject and then lists the causes, common in formal reporting to emphasize result.被動語態（'is caused by'）將成本增加作為主語，然後列出原因，在正式報導中常用以強調結果。
While the immediate financial burden is carried by suppliers and manufacturers, the pressure may eventually move down the supply chain to retailers.
Uses 'While' to contrast current burden on suppliers vs. future pressure on retailers; passive voice 'is carried by' emphasizes the recipients.使用'While'對比目前供應商的負擔與未來零售商的壓力；被動語態'is carried by'強調承受負擔的對象。
Although fast-fashion retailers face no immediate cost increases, the ongoing nature of the disruption indicates that price adjustments may become unavoidable as forward contracts expire.
Uses 'Although' to concede a point and then present main argument; 'as' provides reason for eventual price adjustments, linking cause and effect.使用'Although'讓步，然後提出主要論點；'as'提供最終價格調整的原因，連結因果關係。