By Megan O’Connor
Tensions within the Middle East escalated on Saturday, 28 February 2026 when the United States and Israel carried out co-ordinated military strikes within Iran. While the tension in the region is not new news, the retaliation actions by Iran have raised many questions about how this conflict will affect the rest of the world. Here, we discuss the immediate possible conflicts of the war on the South African Plumbing industry – particularly in terms of increased oil prices and increased import-related costs.
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Higher oil prices
One of the biggest immediate risks from the Middle East conflict is rising oil prices. The Strait of Hormuz carries roughly 20% of the world’s oil supply – any disruption or closure would tighten global supply and drive crude prices higher.
How this affects South Africa:
- Fuel price increases – South Africa imports majority of its crude oil and refined fuel, and as such, petrol and diesel costs could increase. This means that transport to and from jobs, as well as of products could become more expensive. By how much fuel costs will rise still awaits to be seen.
- Higher inflation – Higher transport, manufacturing and utility costs feed into inflation, which could increase prices for basic goods and services.
- Pressure on household budgets – Increased cost of living reduces disposable income. For plumbing businesses, this inflationary pressure can squeeze profit margins — especially if material costs rise faster than what customers are willing to pay.
Shipping routes
If tensions escalate into a full-scale regional war and shipping lanes are restricted, global trade routes could be severely disrupted. Key concerns include potential blockages near the Persian Gulf and disruptions affecting access to the Suez Canal.
South Africa is a trade-dependent economy, therefore if routes close, shipping times increase by 10–20+ days, and imported goods become more expensive.
Many plumbing materials or components are imported, so shipping delays and higher import costs could push up product prices, or worse, cause availability shortages.
If northern routes become unsafe, transporters may bypass the Middle East and reroute around the Cape of Good Hope. While this presents some positives including a possible increase in maritime traffic, port congestion, increased global freight costs, higher input costs for importers and supply chain delays all remain risks that would most likely outweigh any benefits.
Source:
Wallstreet Financial Services. Read the full article here: Middle East Conflict and what it means for SA
