Condom prices to surge by 30% as world's largest manufacturer warns Iran war is 'disrupting production'
Karex produces more than five billion condoms a year and supplies leading global brands like Durex and Trojan, as well as state health systems like the UK's NHS
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The world's biggest condom maker is hiking its prices by at least 30% as production is disrupted by the Iran war, the firm's boss has warned.
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Goh Miah Kiat, chief executive of market leader Karex, told reporters the cost of raw materials used in its products had risen sharply since the conflict broke out on February 28.
The Malaysia-based firm produces more than five billion condoms a year and supplies leading global brands like Durex and Trojan, as well as state health systems like the UK's NHS.
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Karex is one of many businesses that have been affected by the disruption of global oil supplies, caused by Iran's closure of the Strait of Hormuz.
The key shipping route has been cut off by Tehran in response to US and Israeli airstrikes, causing huge disruption to global supply chains.
In order to make condoms, Karex relies on materials derived from oil, including ammonia - which is used to preserve latex and silicone-based lubricants.
The disruption comes as demand for condoms has risen by about 30% this year, Goh says, with higher freight costs and delays to shipping worsening shortages.
"In bad times, the need to use condoms is even more because you're uncertain with your future, whether you'd still have a job next year," he told Bloomberg.
"If you have a baby right now, you'll have one more mouth to feed," he added.
Karex's issues highlight how the US-Israeli war on Iran is pushing up prices for consumer goods.
Airfares have also surged since the conflict began, with research showing the lowest-priced economy tickets costing 24% more on average than they did a year ago.
Shipping disruption in the Strait has also led to higher fertiliser prices and a shortage of helium, which is used to make computer chips.
Earlier this month, the United Nations warned that sugar, dairy and fruit prices will climb due to the rising cost of transport.
On Tuesday, US President Donald Trump extended the Iran war ceasefire, hours before the agreement was set to expire.
Mr Trump said his agreement to extend the truce stemmed from the fact that the Iranian regime had been "seriously fractured" by the war, and this means they need time to put forward an agreed peace proposal to the US.
The President insisted the US was in a strong position and was “going to end up with a great deal” as his team of negotiators gears up to meet with Iranian counterparts in Pakistan.
It is unknown whether the talks are still set to take place, with reports claiming they have been put on hold.