The Iran war severely impacts polyester suppliers, potentially increasing costs for fast fashion retailers such as Zara and H&M.

Golden Ten Data reported on April 24 that since the war in Iran, fossil fuel prices have surged, squeezing polyester suppliers and garment manufacturers in India and Bangladesh, potentially raising costs for fast-fashion retailers such as Zara and H&M. Bagriya, General Manager of Filatex, one of India’s largest polyester yarn producers, said that due to supplier price hikes and disruptions in Middle Eastern supply, the prices of petrochemical raw materials needed for the company’s yarn production—purified terephthalic acid (PTA) and monoethylene glycol (MEG)—have risen by nearly 30%. Asia-based apparel supply chains are feeling this pain. Arya, CEO of Bindal Silk Mills, which supplies dyed and printed polyester fabrics to retailers such as H&M, Zara’s parent company Inditex, Target, Walmart, and IKEA, stated that the energy crisis has significantly pushed up the cost of chemicals and dyes. Polyester, made from petrochemicals, dominates the textile industry, accounting for 59% of global fiber output and used in products ranging from running shorts to dresses. It is directly affected by the squeeze in refined petroleum products caused by the closure of the Strait of Hormuz. This pressure may eventually pass downstream to retailers that rely on Asian polyester fiber supply chains, although retailers can avoid direct pain through forward purchasing.