Prolonged Strait of Hormuz standoff will close in on America's generic drug prescriptions
By Kevin Williams
Published on March 16, 2026.
The ongoing dispute between Iran and the United States over the Strait of Hormuz is expected to negatively impact the global economy, including disruptions in supply chains including metals and manufacturing, and farming and food prices. The U.S. imports nearly half of its generic prescriptions from India, accounting for around 47 percent of the volume. India, meanwhile, depends on the strait for around 40 percent of its crude oil imports. Despite not directly purchasing medicines directly from the Gulf, consumers are still at the end of a supply chain that runs through it. The potential shortages for critical medicines in the US could lead to higher costs and shortages for generic drugs, particularly those with tightest margins. The longer the conflict continues, there is a real likelihood of price increases and disruptions to the supply chain.
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