Why the Iran War Is Driving Up Polymer Prices – And What It Means for Our Customers

The big picture: geopolitics → polymers

The ongoing 2026 Iran war is having a direct and measurable impact on polymer markets, particularly polyethylene used in extrusion.

At first glance, a regional conflict might seem distant from manufacturing in the UK or Europe—but in reality, plastics are deeply tied to global energy and petrochemical systems.

1. The Strait of Hormuz: a critical choke point

A key issue is disruption to the Strait of Hormuz, one of the most important shipping routes in the world.

• Around 20% of global oil supply flows through it 

• The Middle East supplies a huge share of global polyethylene exports 

• ~84% of regional PE capacity depends on this route 

When this route is disrupted:

• Feedstocks don’t move efficiently

• Finished polymers can’t be exported

• Freight costs surge

Result: Immediate upward pressure on polymer prices

2. Rising feedstock costs (naphtha & energy)

Polyethylene is made from hydrocarbons, so energy prices = polymer prices.

• Oil prices have surged significantly since the conflict began

• Naphtha (a key feedstock) has jumped ~55% in weeks 

This flows through the system:

Oil → Naphtha → Ethylene → Polyethylene → Extruded products

Every step becomes more expensive.

3. Logistics disruption and longer lead times

The war is also affecting how materials move globally:

• Shipping routes are being rerouted, increasing transit time and cost

• Freight and insurance premiums are rising

• Delivery times are extending by weeks in some sectors

Even when material is available, it costs more to get it.

4. Real market impact: polymer prices rising fast

We’re already seeing:

• Polymer and resin prices up as much as 60% in some markets 

• Manufacturers passing on cost increases across plastics supply chains

• Packaging and extrusion sectors under margin pressure

This is cost-driven inflation, not demand-driven.

What this means for polythene extrusion

For extrusion businesses, the impact is very real:

• Higher raw material costs (LDPE / HDPE)

• Increased price volatility

• Pressure on margins and quoting accuracy

• Greater need for supply chain stability

  
  

Our position: stable supply, no disruption

While the market is volatile, our focus has been clear:

Maintain continuity. Protect our customers. Deliver as promised.

We have:

• Diversified sourcing strategies

• Strong supplier relationships

• Forward planning and stock positioning

• Active supply chain management

Result: We are continuing to supply without disruption.

The key takeaway

The Iran conflict is pushing polymer prices up due to:

1. Energy and feedstock inflation

2. Disrupted petrochemical exports

3. Shipping and logistics constraints

But:

Not all suppliers are affected equally

Businesses with strong, well-managed supply chains can continue to operate reliably—even in volatile conditions.

If your supply is affected by the conflict and would like to find out how we can help you please do not hesitate to reach out.

www.stretchbandpackaging.co.uk

Tel or Whatsapp 01462 815333