Companies producing items such as plush toys, footwear, apparel and household goods say the effects of tighter oil markets are already filtering through supply chains, with suppliers raising prices for key inputs derived from petroleum.

Executives report early signs of cost inflation that could eventually be passed on to consumers if disruptions persist.Aleni Brands, a Florida-based manufacturer of soft toys made from polyester and acrylic fibers, said its Chinese suppliers increased material costs by 10% to 15% within weeks of the conflict’s escalation.

Chief Executive Ricardo Venegas said the company is absorbing higher costs for now but may raise prices in 2027 if conditions persist.Petrochemicals derived from oil and natural gas are used in more than 6,000 consumer products, according to the US Department of Energy, including items such as lipstick, pajamas, detergents, synthetic fabrics and medical supplies.

While the majority of crude oil is used as fuel, a significant portion is refined into chemical compounds that underpin modern manufacturing.Industry experts say crude oil, composed primarily of hydrocarbons, is processed into core petrochemicals such as ethylene, propylene and benzene, which form the basis of plastics, nylon and polyester.

These materials are widely used across sectors ranging from textiles to electronics and healthcare.Consultants note that material costs represent a substantial share of manufacturing expenses.

Andrew Walberer, a partner at Kearney, said raw materials can account for up to 30% of production costs for products such as garments, amplifying the impact of commodity price swings.

Trade groups warn that sustained oil prices above $90 per barrel could accelerate inflationary pressures across supply chains. The Footwear Distributors and Retailers of America estimates that petrochemical-based materials make up roughly 70% of synthetic footwear, with oil price fluctuations directly influencing around 30% of those costs.

The group projects retail shoe prices could rise by 1.5% to 3% in the coming months.Manufacturers are also adjusting procurement strategies. Rinseroo, which produces portable washing attachments using petroleum-based components such as polyvinyl chloride, said it increased its order volumes from China after being warned of a potential 30% cost increase.

Founder Lisa Lane said the company is exploring cost-cutting measures while delaying further price hikes after earlier increases linked to tariffs.In the healthcare sector, Gentell said it plans to raise prices by about 15% as costs for petrochemical-based adhesives and energy rise.

Chief Executive David Navazio estimated overall company expenses have increased by roughly 20%.Analysts say the broader economic impact of the conflict is already visible in higher fuel prices, which are feeding into transportation and logistics costs.

This is pushing up prices for goods moved by diesel-powered freight networks, as well as air travel costs due to rising jet fuel prices.

With supply disruptions now extending into their second month, industry participants say prolonged instability could lead to sustained cost pressures across global manufacturing, particularly for products reliant on synthetic materials and plastic-based components.