Iran conflict impacts clothing prices
Iran's war is causing an increase in global clothing manufacturing costs, as rises in energy prices, shipping, and raw materials like polyester and cotton place significant pressure on factories. Polyester prices have surged by up to 25% within weeks of the outbreak of the war, driven by higher oil prices, while cotton has reached its highest level in two years due to supply disruptions, fertilizer shortages, and the impact of the El Niño phenomenon on harvests. The industry anticipates that these increases will become apparent to consumers in the upcoming spring and summer, with clothing prices potentially rising between 10% and 20% due to increased production costs that could persist for up to a year. Additionally, manufacturers are struggling with weak demand and find it difficult to pass these additional costs onto consumers.
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