Geopolitical tensions in the Strait of Hormuz are traditionally viewed by experts through the lens of energy security and fuel price spikes. However, the consequences of these events extend far beyond oil-producing regions, triggering a chain reaction that will inevitably affect the fashion industry. What happens to oil has a direct impact on what we wear and how much it costs.
Hidden Dependency: Oil as the Foundation of Wardrobes
Many consumers do not realize that modern clothing is a product of the petrochemical industry. The fashion industry is critically dependent on synthetic fibers such as polyester, nylon, and spandex. These materials, which form the basis of the mass market, are produced exclusively from petrochemical raw materials. Consequently, any disruptions in oil supplies or sharp changes in raw material prices are immediately reflected in the production cost of fabrics.
The Economy of 'Fast Fashion' Under Threat
Although oil prices react to geopolitical changes almost instantly, the garment industry suffers from these shocks with a certain delay. Nevertheless, the impact is no less significant. The sector, which focuses on cheap goods and competes primarily on low production costs, is in the zone of maximum risk.
Rising raw material prices and complicated logistics due to instability in key trade routes undermine the very business model of budget fashion. If the cost of producing synthetic fabrics and their delivery increases, the profitability of brands operating at low prices drops rapidly, which in the long run will lead to a review of price tags on store shelves.
