The ongoing conflict between Iran and the US-Israel coalition is rippling far beyond global energy markets, now threatening to push up consumer prices for a critical everyday product: condoms. Goh Miah Kiat, chief executive officer of Malaysia-based Karex — the world’s largest condom manufacturer — has announced that the company could raise retail prices by as much as 30%, with even steeper increases possible if hostilities continue to disrupt key raw material supplies.
Karex is an industry powerhouse, churning out more than five billion condoms annually to supply major global brands including Durex and Trojan, as well as public health systems such as the UK’s National Health Service. In recent interviews with Reuters and Bloomberg, Goh explained that production costs have skyrocketed since the outbreak of the conflict, driven by widespread disruptions to oil and petrochemical supplies that the company depends on.
The crisis centers on the Strait of Hormuz, one of the world’s most vital maritime chokepoints. After Iran responded to US and Israeli airstrikes by threatening to target commercial shipping passing through the waterway, the strait has effectively been closed to regular traffic. Approximately 20% of the world’s crude oil, liquefied natural gas, and key petrochemical products normally move through this route, so the closure has sent shockwaves through global supply chains.
For Karex, this disruption hits directly at its core production inputs. The manufacturer relies on petroleum-derived materials for its products: ammonia, a petrochemical byproduct used to preserve latex, and silicone-based lubricants, both of which have seen sharp price increases and supply shortages since the strait closure.
Compounding the issue, demand for condoms has already jumped by roughly 30% globally this year. Elevated freight costs and widespread shipping delays have further tightened supplies, creating a perfect storm of constrained production and rising consumer need. Goh noted that this demand surge follows a clear trend during periods of economic and geopolitical uncertainty: when people face unclear job prospects and future instability, they are far more likely to prioritize avoiding unplanned pregnancies. “In bad times, the need to use condoms is even more because you’re uncertain with your future, whether you’d still have a job next year,” he told Bloomberg. “If you have a baby right now, you’ll have one more mouth to feed.”
The impending price increase at Karex highlights a little-discussed downstream impact of the Iran conflict: while much of the global focus has been on rising energy prices, the disruption to petrochemical supply chains is pushing up costs for a huge range of consumer goods that few people connect to oil markets.
As of Wednesday, the outlook for de-escalation remains uncertain. US President Donald Trump has announced he will extend a bilateral ceasefire between the US and Iran while peace negotiations progress, but there has been no clear update on the status of talks or a timeline for a lasting resolution.