A sharp surge in global oil prices following the escalation of conflict involving Iran has begun rippling through the worldwide textile and apparel industry, raising production costs and threatening supply chains already strained by geopolitical uncertainty.
Benchmark Brent crude climbed close to its highest level since 2022 as markets reacted to the widening conflict in the Middle East, a region that accounts for a large share of global oil exports. The spike has renewed concerns about energy supply disruptions and shipping risks through the strategically important Strait of Hormuz, a key route for global trade.
For the textile and apparel sector, the oil rally carries direct consequences because many key raw materials are derived from petroleum. Synthetic fibres such as polyester, nylon and acrylic rely heavily on petrochemical inputs linked to crude oil prices. Polyester alone accounts for about 59% of global fibre production, making the industry particularly sensitive to energy price volatility.
Industry analysts say the recent oil surge is already pushing up the cost of synthetic textile inputs. Feedstocks such as purified terephthalic acid (PTA) and mono-ethylene glycol (MEG), both derived from crude oil, typically rise in price when energy markets tighten, transmitting higher costs across the textile value chain.
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In major textile hubs across Asia, manufacturers are beginning to feel the impact. Rising crude prices have triggered increases in polyester fibre costs and other synthetic yarn inputs, raising concerns for garment exporters that rely on large volumes of man-made fibres.
The conflict has also disrupted shipping routes. Some cargo vessels are avoiding the Strait of Hormuz and taking longer routes around Africa, adding weeks to delivery times and increasing freight costs. These disruptions are pushing up raw-material prices and creating delays in textile shipments to key markets in Europe and the Gulf.
Textile industry groups warn that if crude prices remain above $100 per barrel for an extended period, yarn and fabric costs could rise significantly. Trade bodies in South Asia estimate that textile raw-material prices could increase by 15–20%, squeezing profit margins for manufacturers and exporters.
The effects are expected to ripple through the broader fashion industry. Higher fibre and energy costs could push up garment prices globally, particularly for fast-fashion retailers that rely heavily on synthetic fabrics. Synthetic materials dominate modern clothing production and the fashion sector consumes substantial amounts of oil-derived inputs each year.
For major apparel exporters such as Bangladesh, Vietnam, India and China, the oil rally could raise manufacturing costs across spinning, dyeing and finishing processes, all of which depend heavily on energy and petrochemical materials.
Market analysts say the trajectory of oil prices will depend largely on whether the conflict expands further across the Middle East. Prolonged disruption to oil flows or shipping routes could deepen cost pressures across global textile supply chains, while diplomatic de-escalation may help stabilize both energy markets and apparel production costs.
