Mar 03, 2026 (MarketLine via COMTEX) --
Fast fashion brands could be the biggest loser in the Middle East conflict as oil prices increase. But across the board, fashion brands are being warned to prepare for a cost surge and shipment delays.
Warnings have been sounded for fashion firms to prepare as ongoing military action in the Middle East is likely to have a sizeable impact on global apparel trade.
As the conflict escalates, the threat of closure of the Strait of Hormuz looms aEUR" not the best news for major apparel manufacturing hubs like China and India, which depend on the Middle East for much of their oil supply.
The Strait is a key shipping route. Not only does a fifth of the global seaborne oil pass through it, but so does a fifth of worldwide LNG shipments. Around 35% to 50%Aof India's crude oil imports may be linked to shipments passing through the Strait of Hormuz, while the route also transportsAapproximately 50%Aof China's oil imports.
aEURoeThe main threat from the conflict in the Middle East comes from higher oil prices, which will push up costs for everyone. That has a knock-on impact for apparel manufacturing and transportation,aEUR Neil Saunders, analyst at GlobalData, tells Just Style, adding that the threat is greater for countries that are reliant on Middle Eastern oil, like India.
He also warns that the disruption affecting trade through the Strait of Hormuz means importers are likely weighing alternative trade routes, which could result in longer shipping times and increased costs.
aEURoeAll these things will ultimately filter down into the prices consumers pay or erode the margins retailers take.aEUR
Sheng Lu, professor of apparel studies at the University of Delaware, tells Just Style that the rising oil price as a result of the crisis could also directly impact the costs of textile raw materials.
aEURoeThis will be especially true for man-made fibres derived from petroleum, such as polyester, nylon, and acrylic. Since polyester dominates global fibre consumption, apparel brands with high synthetic fibre use, particularly fast-fashion retailers, may face greater short-term cost risks than brands relying more on natural fibres. In the medium to long term, if brands shift toward increased use of natural fibres to reduce petrochemical volatility, higher demand could push up prices for natural fibres like cotton as well.aEUR
And while the Strait of Hormuz is not a major route for apparel trade, if the crisis spreads to the Red Sea Route in the same area, apparel shipping and trade will be directly impacted, he warns.
aEURoeNotably, the Red Sea Route connects many East Asian and Southeast Asian countriesaEUR(TM) apparel exports to the EU, including China, Bangladesh, India, and Pakistan. As we've already seen in the Red Sea crisis a year ago, rerouting around the Cape of Good Hope will add at least 10-14 days of transit time and significantly higher fuel costs.
aEURoeAdditionally, parts of the Middle East, such as Jordan, were viewed as an emerging sourcing destination for many US fashion brands and retailers. However, the military conflict in the region may prompt fashion companies to reduce or avoid sourcing from the region in the short to medium term. More broadly, rising geopolitical tensions and policy uncertainty are likely to remain major concerns for fashion companies and affect their sourcing decision."
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COMTEX_478477731/2227/2026-05-03T23:18:27
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