Hormuz crisis has a new victim, world's largest condom maker eyes 30% hike

The head of the Malaysia-based company Karex, the world's largest condom manufacturer, stated in media interviews that production costs have surged significantly since the conflict began.

In Short

• Karex plans major price hike due to Iran conflict impact
• Global supply chains disrupted by Strait of Hormuz blockade
• Demand for condoms rises 30% amid uncertain global climate

The chief executive of Karex, the world’s largest condom manufacturer, has announced plans to raise prices by up to 30% or more if the ongoing conflict involving Iran and the United States continues to disrupt the supply of key raw materials needed for production.

Goh Miah Kiat, the head of the Malaysia-based company, stated in media interviews that production costs have surged significantly since the conflict began. Karex produces over five billion condoms annually, supplying major global brands such as Durex and Trojan, as well as national health services like the UK's NHS.

Goh shared these insights in discussions with Reuters and Bloomberg. The conflict in the Gulf has severely disrupted global oil supplies, following Iran's threats to target vessels in the Strait of Hormuz in response to the US's naval blockade.

This situation has essentially blocked the waterway, leading to considerable disruptions in global supply chains. Approximately one-fifth of the world's crude oil and liquefied natural gas, alongside other petrochemicals, typically pass through this strait. Karex relies on oil-derived materials, including ammonia for preserving latex and silicone-based lubricants.

There has been a 30% increase in condom demand this year, compounded by rising freight costs and shipping delays exacerbating shortages, according to Goh.

He explained to Bloomberg, "In uncertain times, the need for condoms rises because people are unsure about their future prospects, including job security." "Having a child now would mean another mouth to feed," he added.

The increase in condom prices highlights how the US-Israel conflict with Iran, which has already affected global energy markets, is also raising the cost of consumer goods. The conflict has contributed to a significant rise in airfares, with economy ticket prices increasing by an average of 24% compared to last year, according to recent research.

Additionally, disruptions in Gulf shipments have led to higher fertiliser costs and a helium shortage, impacting the computer chip industry. The bottled water sector is also facing challenges as manufacturers struggle to secure raw materials.

Earlier this month, the United Nations warned of potential increases in sugar, dairy, and fruit prices due to escalating transportation costs. Meanwhile, the status of peace talks between the US and Iran remained uncertain as of Wednesday, following US President Donald Trump's decision to extend a ceasefire between the two nations until further progress in negotiations.

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