"From oil to orders: How new phase of war is hitting textile industry", 19 March 2026

The escalating United States–Iran–Israel conflict is entering a new and more disruptive phase—one that is beginning to directly impact the global textile and garment industry...

Energy shock: The first blow to margins

The most immediate impact is being felt through rising energy prices. With crude oil climbing above $100 per barrel, the cost of:

• Polyester and synthetic fibres
• Dyeing and processing
• Factory utilities and transportation have increased sharply.

For mills and processors, this translates into instant margin pressure...

Freight disruption: The second hit to execution

The conflict’s shift toward maritime and airspace disruption is now affecting logistics:

• Shipping routes through the Gulf have become risk-prone and expensive
• War-risk insurance premiums have surged
• Air cargo capacity via UAE and Qatar hubs has tightened

For garment exporters, particularly those serving fast fashion clients, this creates a critical risk:

Missing delivery windows can be more damaging than rising costs.

Delays of even 7–10 days can result in:

• Chargebacks
• Order deferrals
• Forced markdowns at the retail level

The Hormuz factor: A systemic risk

At the centre of the disruption is the Strait of Hormuz, a chokepoint through which a significant portion of global oil and trade flows.

Any prolonged disruption here can trigger:

• Sharp spikes in freight costs
• Container shortages
• Extended transit times across Asia–Europe routes

[...]

Buyer behaviour is already changing

Retailers and global brands are beginning to respond cautiously:

• Delaying order confirmations
• Reducing volumes
• Seeking flexible delivery schedules

In an environment of rising costs and uncertain logistics, buyers are shifting toward risk minimisation, which places additional pressure on suppliers.

Fast fashion vs basics: Uneven impact

[...]

Exporters heavily reliant on quick-turn programs are facing the most immediate disruption.

A new operating reality for the industry

[...]

Companies are increasingly prioritising:

• Shipment flexibility
• Inventory buffers
• Multi-modal freight strategies

What comes next

The most likely near-term scenario is not a full-scale shutdown, but a prolonged period of volatility characterised by:

• Elevated energy prices
• Unstable freight conditions
• Cautious buyer demand

[...]

The textile industry is no longer just reacting to the war; it is now operating within it.