Finance
Lanxess Raises Chemical Prices to Counter Effects of Iran War
Published by Global Banking & Finance Review®
Posted on March 19, 2026
2 min readLast updated: March 19, 2026
Quick Summary
Lanxess is increasing chemical prices to offset surging energy and raw material costs caused by the U.S.–Israeli war on Iran, which has disrupted supply chains and driven up inflation in the sector.
Lanxess Increases Chemical Prices Due to Iran War and Rising Energy Costs
Lanxess Responds to Middle East Conflict and Energy Price Surge
By Ozan Ergenay
March 19 (Reuters) - Lanxess said it was raising chemical prices to counter the effects of the Middle East conflict, after the speciality chemicals maker reported annual results and announced job cuts earlier on Thursday.
Impact of the U.S.-Israeli War on Iran
The U.S.-Israeli war on Iran, continuing into its third week, has pushed up prices in the chemicals sector and disrupted markets, sparking fears that the widening conflict will create an oil price shock, raise inflation and dampen consumer demand.
Chemical companies have been hit particularly hard, as many raw materials for the industry are produced in the Middle East.
Rising Energy and Material Costs
Lanxess CEO Matthias Zachert told reporters that the prices the company pays for energy and materials had been going up since the war started.
"We have to do something about it and pass on these price increases, so that we do not have to foot the bill," Zachert said.
"If you have a look at the situation, our competitors are doing the same thing, but we started early in order to counteract as early as possible."
Industry-Wide Price Increases
Some other chemicals companies, including Brenntag , Wacker Chemie and BASF , have also started raising prices due to surging energy costs.
If the Middle East conflict continues, the chemical industry will see a further and lasting increase in product prices, Zachert said.
Global Economic Risks and Industry Outlook
In a separate statement on Thursday, German chemicals association VCI said the war significantly increased the risks to the global economy, particularly due to the blockade of the Strait of Hormuz.
"Consequently, strong price increases are expected, especially for products where the region plays a central role in the global trade," the industry lobby said.
(Reporting by Ozan Ergenay in Gdansk, editing by Milla Nissi-Prussak)
Key Takeaways
- •Lanxess raised prices early, aligning with competitors like Brenntag, Wacker Chemie and BASF, to preserve margins as energy and input costs escalate due to the Middle East conflict. (apnews.com)
- •The Strait of Hormuz blockade and strikes on Gulf energy infrastructure have triggered a sharp jump in oil, aluminum, helium and ethylene prices, adding pressure across chemicals and manufacturing industries. (en.wikipedia.org)
- •Analysts anticipate sustained price hikes if the conflict persists; U.S. petrochemical firms may benefit from stronger margins, while global production cost pressures mount. (gurufocus.com)
References
Frequently Asked Questions about Lanxess raises chemical prices to counter effects of Iran war
1Why is Lanxess raising chemical prices?
Lanxess is raising chemical prices to counter increasing costs caused by the Middle East conflict, particularly due to rising energy and raw material expenses.
2How has the Iran war impacted the chemicals sector?
The Iran war has disrupted markets, pushed up prices in the chemicals sector, increased energy and raw material costs, and raised fears of an oil price shock.
3Are other chemical companies also raising prices?
Yes, other companies like Brenntag, Wacker Chemie, and BASF have also raised prices due to surging energy costs linked to the conflict.
4What risks does the Middle East conflict pose to the global economy?
The conflict increases risks to the global economy, especially due to disruptions in key trade routes like the Strait of Hormuz, potentially causing strong price increases.
