A geopolitical crisis may seem far removed from the shop floor—but in 2026, that’s no longer the case. The Iran crisis and the disruption of the Strait of Hormuz are heavily impacting energy, raw materials, and steel—three core pillars for manufacturers of rubber and plastic components. The effects are likely to extend into the medium term, influencing price trends over the next 2–3 years.
In this article, we’re going to break down what’s happening—and more importantly, what it means for companies planning procurement, tooling, and production in the months ahead.
Hormuz disruption: the bottleneck that is slowing everything down
The conflict in Iran has turned the Strait of Hormuz into a high-risk zone, temporarily disrupting one of the world’s most critical trade routes.
This is not just about oil:
- Over 20% of global energy supply (oil and LNG) transits through this corridor
- Key industrial materials are also affected (sulfur, bauxite, fertilizers)
- Shipping routes are being diverted, leading to sharp increases in costs and delivery times
For rubber and plastics manufacturers, the impact is immediate: less reliable supply chains, especially for those sourcing raw materials from Asia and the Middle East.
Rising energy costs means higher production costs
The first visible effect is on energy markets:
- Gas prices in Europe have surged again to critical levels
- EU storage levels remain relatively low (below 30%)
- Electricity prices are still tied to gas, even with growing renewables
For manufacturers, this means that:
- Production costs are becoming all the more volatile and harder to forecast
- Energy-intensive processes (e.g., molding, vulcanization, heat treatments) are under great pressure
Steel under pressure: what to expect for tooling
Steel production—one of the most energy-intensive industries—is also under strain, pulled in opposite directions:
- Global overcapacity (particularly from Asia)
- Rising energy costs in Europe
The result:
- Increased price volatility
- Reduced margins for European producers
- Greater reliance on imports
For companies purchasing steel molds, this trend translates into:
- Higher variability in tooling prices
- Less predictable lead times
- Growing disparities between suppliers in both cost and quality
This is where a key strategic shift comes in: it’s no longer just about upfront cost but about working with partners who can provide reliability, planning visibility, and continuity in production.
Rubber Market: tight supply, sustained prices
The natural rubber market has been under pressure for some time, and 2026 confirms the trend:
- Demand continues to outpace supply
- Prices remain stable but relatively high
- Production is shifting toward India and emerging regions such as West Africa
At the same time:
- Manufacturers are regionalizing supply chains
- Reducing dependence on Southeast Asia is becoming a priority
For companies sourcing from East Asia or South America, the takeaway is clear: supplier diversification is no longer an option.
Innovation continues—yet still under pressure
Despite the challenging environment, the industry is adapting:
- Increased use of high-performance materials (e.g. HNBR for automotive and electric applications)
- Optimization of bonding agents and reinforcements for improved durability
- Transition toward alternative energy sources (biomass, biogas)
However, here’s the constraint: high energy costs are slowing down many “green” investments in Europe
What to do now: 3 practical moves
In a volatile environment, competitive advantage comes from adaptability. Three key actions are the following:
1. Supply chain regionalization
Reduce exposure to critical routes like Hormuz by prioritizing closer or alternative suppliers where feasible.
2. Raw material Optimization
Invest in recycling, regeneration, and waste reduction.
3. Dynamic management of energy costs
Avoid locking into long-term contracts at peak price levels.
Efficiency and reliability: this is what makes the difference
2026 confirms a shift that began in the post-COVID era: it’s no longer about more production but about smarter production—with tighter risk control.
For companies in rubber and plastics—where steel molds are a critical asset—this shift leads to a very practical conclusion: choosing reliable partners who can ensure consistent quality, predictable lead times, and strong technical support is now a competitive advantage, not just an operational decision.
Because when the entire supply chain is under stress, every link matters.
And the mold—more than ever—is one of the most critical.
