The United States and Israel’s war on Iran has pushed up the price of nearly everything.
In the early days of the war, the global supply of oil, gas and fertilizers was the main focus of this crisis.
In recent days, however, pharmacists have also noted a spike in the price of medicines.
In the United Kingdom, for example, pharmacies are charging 20 to 30 percent more for over-the-counter medicines, and the common painkiller paracetamol has more than quadrupled in price. In India, chemists are reporting price rises of as much as 96 percent.
We break down the reason behind the rise in prices and how badly countries around the world will be affected:
Since the early days of the war, American aggression has blocked the Strait of Hormuz, through which 20 percent of the world’s oil and liquefied natural gas (LNG) supplies are shipped in peacetime. Experts say this has also disrupted pharmaceutical supply chains, which are reliant on the oil supply.
“Pharmaceuticals are tied to both petrochemical feedstocks, a large part of which are sourced through the Persian Gulf,” Frederic Schneider, a nonresident senior fellow at the Middle East Council on Global Affairs, told Al Jazeera.
“Furthermore, some logistics routes, including for pharmaceuticals, for example, between East Asia and Europe, have important sea and air transshipment stops in the Gulf, particularly in Dubai. These routes are especially fragile because many pharmaceuticals need special handling, including an unbroken cold chain. Both have been disrupted through the war,” he added.
Wouter Dewulf, a professor at the University of Antwerp in Belgium and an expert in pharma logistics, warned that while pharmaceutical supply chains are not in immediate danger, medicines are highly exposed to air logistics.
The US-Israel war on Iran has caused severe disruption for airlines, featuring widespread cancellations, airspace closures and a looming jet fuel crisis.
“35 percent of pharmaceuticals move by air, and about 90 percent of critical or life-saving pharmaceuticals and vaccines do so too. I estimate that 22 percent of global air cargo flows are exposed to Middle East disruptions,” he said.
While the price of medicines has already begun increasing in some countries, Schneider said the impact across the globe will depend on several factors, including whether other suppliers are available.
“China can source most of its demand from elsewhere. India, however, is a major producer of pharmaceuticals and depends on supplies from the Gulf, which is a major chokepoint in the global pharmaceutical supply network,” he said.
“In the Middle East, the picture is still more manageable than in conflict zones: There are risks and delays, not yet a generalised collapse, especially since the airlift is gradually coming back. Pharmaceuticals always have priority as the yield to transport pharmaceuticals is higher,” he added.