From jet fuel to chewing gum, oil surge drives broader price pressure

It might be hard to imagine the Iran war weighing on stuffed toys with names like Snuggle Glove, Bizzikins and Wobblies, but even plush playthings are not immune when oil shipments from the Middle East are constrained.

Like many soft toys, the creatures developed by a manufacturer in Fort Lauderdale, Florida, are made with polyester and acrylic, synthetic fibers derived from petroleum. Three weeks after the war started, suppliers in China notified Aleni Brands that getting the materials already was costing them 10% to 15% more, CEO Ricardo Venegas says.

“I think this situation demonstrates how much oil permeates throughout our system, and we can’t get away from it,” says Venegas, who founded Aleni Brands last year and is in the process of adding product lines. “Who would have thought that the price of a toy would have a direct relationship with oil?”

It’s not just toys. Petrochemicals derived from oil and natural gas go into making more than 6,000 consumer products, according to the U.S. Department of Energy. Computer keyboards, lipstick, tennis rackets, pajamas, soft contact lenses, detergent, chewing gum, shoes, crayons, shaving cream, pillows, aspirin, dentures, tape, umbrellas and nylon guitar strings are just some of them.

So far, the war’s most tangible and immediate effect for many people outside the conflict zone has been spiking gasoline prices. Travelers also are seeing higher airfares and flight fees as airlines respond to the rising cost of jet fuel. Consumers may find themselves paying more for food, furniture or any goods transported by trucks that run on diesel.

But crude oil isn’t just refined as fuel. It gets turned into chemicals, waxes, oils and other mixtures that appear in a vast array of everyday items, including most made with plastic and rubber. Petroleum derivatives also are used in a lot of packaging. With disruptions to global oil supplies now in their eighth week, higher production costs also could make things more expensive for shoppers, according to trade groups and some companies.

The Associated Press has the full story.