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Fast fashion industry faces supply chain crisis amid Iran conflict
Photo: The Age
2026-07-26 10:46   Economy   10

Fast fashion industry faces supply chain crisis amid Iran conflict

The article explores how the Iran crisis is disrupting global oil markets, with cascading effects on the fast fashion industry.Synthetic fibres like polyester and nylon, derived from petroleum, are becoming more expensive as oil prices fluctuate.

Companies such as Tongkun Group are seeing increased profits due to demand for raw materials, while others like Hengli Petrochemical face falling shares.The crisis has exposed vulnerabilities in supply chains, with Chinese synthetic fibre production dropping sharply.

Brands relying on recycled materials, like Inditex and H&M, may be better positioned to withstand disruptions compared to companies dependent on oil-based fabrics.The article also highlights rising transportation costs and the environmental impact of fast fashion, urging a shift towards sustainable practices.Overall, the crisis is reshaping the apparel industry, with long-term implications for pricing and supply chains.

Full reading at The Age

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