Iran war disruptions ripple through pharma supply chain, raising raw material and shipping costs

The ongoing conflict between Iran and its adversaries has entered its third month, and analysts are now seeing early signs that the fighting is affecting the pharmaceutical supply chain.

Disruptions to oil shipments through the Strait of Hormuz have pushed up energy prices, while uncertainties around the availability of key raw materials sourced from the region are increasing costs for drug manufacturers.

Although the Middle East is not a major producer of finished pharmaceuticals, the higher shipping rates and material shortages are expected to tighten margins and could delay production schedules for companies that rely on these inputs.