The ongoing Iran conflict has significantly disrupted the global plastics supply chain, leading to soaring costs for polyethylene, a key material in packaging. As oil prices increase due to the war and Strait of Hormuz disruptions, resin prices have nearly doubled since the conflict began, forcing manufacturers to raise prices and pass costs to consumers. Major American producers report already implementing substantial price hikes, with further increases expected as supply shortages persist.

The conflict's impact extends beyond raw material costs; damage to Middle Eastern petrochemical facilities, like Saudi Arabia’s Jubail plant, has reduced global capacity, causing international bidders to turn to the Gulf Coast in the US for resin. This shift is raising transportation expenses and complicating supply logistics. Industry insiders warn that these supply constraints could last for years, risking widespread shortages that may eventually drive retail prices higher and threaten the viability of some plastic manufacturing businesses.