Iran war drives up commodity prices and burdens supply chains
The escalation in the Middle East is now also having a noticeable impact on German manufacturers of paints, coatings and printing inks. From the industry's perspective, this is primarily reflected in rising raw material prices and uncertain supply chains, according to the Association of the German Paint and Printing Ink Industry (VdL) in Frankfurt.
The coatings and printing ink industry is heavily dependent on petrochemical raw materials and is clearly feeling the effects of rising crude oil prices. Key preliminary products such as binders, solvents, resins and additives are often based on raw materials obtained from crude oil. As a result of the escalation of the conflict, the global price of crude oil (Brent) is currently around USD 100 per barrel (as at 26.03.2026) and has risen significantly in just a few weeks. This exorbitant price trend is having a direct impact on primary products, as crude oil-based raw materials are becoming more expensive and energy costs in production are rising significantly. Several critical raw materials are experiencing price increases of up to 100%. This cost pressure is particularly critical against the backdrop of subdued demand from key customer sectors such as construction and industry.
Supply chains and security of supply under pressure
The overall geopolitical situation is putting increasing pressure on global supply chains in the fourth week of the conflict. Extended sea transit times are affecting key import flows, particularly from Asia. The route via the Red Sea is currently being avoided; instead, the detour around the Cape of Good Hope is being used, leading to delays of 10 to 14 days. At the same time, freight rates and war risk insurance premiums are rising significantly. Air freight is also affected: Closed airspace and detour lead to longer transportation routes and less available freight capacity, which results in additional costs. For companies, this means higher logistics costs, longer transportation times and less predictability in procurement. The war in Iran is acting as an external stress factor for the paints, coatings and printing inks industry, exacerbating existing structural challenges and further increasing the pressure on companies to adapt. At the same time, we assume that the full extent of the impact is yet to reach the industry and that it will continue to be felt for some time after the war has ended.