The deeper supply chain impacts of the Iran conflict

In this episode of DBrief, Louise McGrath and Jeff Wilson from the Australian Industry Group return to the conflict in Iran, as impacts move beyond fuel prices and deepen across industrial supply chains. They explain why businesses may be entering a new stage of the shock - shifting from monitoring risk to absorbing real costs, operational uncertainty and disruption. The discussion highlights how freight and insurance withdrawals, shipping diversions and emergency surcharges are becoming early pressure points, well before widespread product shortages emerge. Drawing on member intelligence, Louise and Jeff explore where risks are building across critical inputs including resins, plastics, packaging, nitrile gloves, construction materials and bitumen. They examine why Australia’s position at the end of long petrochemical supply chains matters, how force majeure notices are amplifying uncertainty, and why the effects of this crisis are likely to persist well beyond any near‑term resolution. Key takeaways The impact of the Iran conflict is no longer limited to fuel prices, with freight, insurance and shipping disruptions now flowing through supply chains. Critical inputs such as resins, packaging materials, nitrile gloves, PVC products and bitumen are emerging as key pressure points. Force majeure notices and unclear delivery timelines are making investment, workforce and production planning more difficult for businesses. Government responses are evolving, with fuel security measures, supply chain coordination and economic resilience tools being prepared if shortages worsen. Businesses are moving beyond “wait and see”, actively assessing supply chain exposure, working with employees, and planning for reduced fuel and material availability.  Further information and resources: Experiencing fuel or supply disruptions? Report impacts on your business here. We would welcome any information you can provide. Australian Industry Group is monitoring the evolving impacts of the conflict in the Middle East on Australia's fuel supply and broader supply chains. Read more. Contact the Industry Development & Policy team here.