Snapshot
- Karex, the largest condom company worldwide, plans to raise prices up to 30% due to disturbances in the supply of raw materials from the city to Iran.
- The war in Iran has caused serious disruptions in global supply chains, especially through the Straits of Hormuz, carrying one fifth of world crude oil.
- Demand for condoms has increased by 30% this year, while higher transport costs and delays worsen deficiencies.
- The crisis increases prices in various goods and services, such as air tickets, fertilizers, materials for electronic and bottled water.
- Peace talks between the US and Iran remain uncertain, with an extension of the conditional truce.
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The head of Karex, the largest construction company condoms the world says it will increase its prices up to 30% or more if the war in Iran continues to disrupt the supply of raw materials used in its products. Karex CEO Go Mia Kyat told the media that production costs have increased sharply since the start of the conflict.
Malaysian-based company produces more than five billion condoms annually and supplies top global brands such as Durex and Trojan, as well as state health systems such as the UK NHS.
Goh made the comments in interviews with Reuters and Bloomberg. Global oil supplies have been severely disrupted Since Iran responded to the U.S. and Israel air raids with threats to target ships in the Straits of Hormuz. This has virtually closed the waterway, causing huge disruptions in global supply chains.
About one fifth of global crude oil and liquefied natural gas (LNG) – as well as other petrochemicals – usually passes through the Straits. The Karex is based on petroleum-derived materials, including ammonia – which is used to maintain latex – and silicone-based lubricants.
Demand for condoms has increased by about 30% this year, with the highest transport costs and delays in the mission aggravating the deficiencies, Goh said. «In difficult times, the need for condoms is even greater, because you're not sure about your future, if you'll still have a job next year.», stated in Bloomberg. «If you have a baby now, you'll have another mouth to feed», add.
The increase in condom prices highlights how the US-Israel war with Iran, which has already shocked global energy markets, is pushing upwards and other prices of goods for consumers.
The crisis contributed to the increase in air tickets , with cheaper financial position tickets cost an average of 24% more than a year ago, according to a new investigation. Meanwhile, stopping shipments through the Gulf has led to higher fertilizer prices and a lack of sun, which is used to make computer chips.
The bottled water industry is also under pressure, as manufacturers find it difficult to secure raw materials. Earlier this month, the United Nations warned that prices of sugar, milk products and fruit will increase because of increasing transport costs.
The state of peace talks between the US and Iran remained unclear on Wednesday, following President Donald Trump's statement that it would extend the truce between the two countries until a specific proposal was given by Iran and the negotiations went ahead.
