The Iran war’s next hidden cost: Higher prices for plastic
By Brian Cheung
Published on April 17, 2026.
The U.S.-Israeli war with Iran has resulted in higher prices for plastic products, particularly polyethylene, a synthetic resin used to make plastic packaging. The Middle East, which accounted for around 42% of global exports of polyethylen last year, has seen its costs rise alongside oil prices. The price of polyplastic bags has risen by 8% and could increase by as much as $1.10 by May. The CEO of Emerald Packaging, California-based company that produces millions of plastic bags each year, Kevin Kelly, anticipates an additional 15-20% increase in operating costs. However, it is difficult to determine how much more money grocery store shoppers might be paying already due to the plastic squeeze.
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