"War in Iran: how will it affect the international textile trade?", 2 March 2026

The sudden launch of military operations by Washington and Tel Aviv in Iran on February 28 is paralysing the Strait of Hormuz, the only maritime gateway to the Persian Gulf. This choke point...has prompted trade and freight specialists to brace for potential cost inflation and prolonged transit times...

The impact of the conflict on the ocean container freight rate between Asia and Europe...will not be clear until the end of the first week of March....shipping giants...have opted to avoid the Suez Canal for the time being and to route their vessels via the Cape of Good Hope. This alternative route...adds several weeks and feeds soaring insurance premiums through into container shipping costs.

At the same time, air cargo is losing its status as a safe haven for brands seeking to bypass maritime congestion. The partial closure of regional airspace is disrupting express logistics. ..

As of Monday, the only quantifiable impact is the 'war risk surcharge' applied by some carriers to customers wishing to ship containers to the Persian Gulf...This is a significant factor for the European clothing industry, for which the United Arab Emirates is, via luxury goods, the 11th-largest customer...

...a prolonged blockage of the Strait of Hormuz would deal a blow to the global oil supply chain. That would further increase transport costs, with repercussions extending beyond Asia-Europe routes to Asia-US and Europe-US lanes...

There is also the question of damage to the region’s infrastructure. Iranian strikes have targeted American bases in the area, as well as several ports and hotels across the Gulf...

Now more dependent than ever on synthetics, the [textile] sector could...suffer from a prolonged surge in crude prices, beyond transport costs alone...

Whether in textiles or cosmetics, the current crisis could most of all harm Asian suppliers themselves. Experience has shown that, during major events such as armed conflicts and pandemics, large groups are often inclined to shift the full burden of additional costs onto their suppliers, with implications for working and production conditions...