Strait of Hormuz disruption threatens 15% apparel cost spike for Zara, H&M, Gap
US-Iran tensions in the Strait of Hormuz are squeezing apparel exports from India and Bangladesh to the EU and Middle East. Production costs for Zara, H&M, Gap and Tommy Hilfiger could rise 10-15%, with shipping costs jumping 30-50% as vessels stall for days.
Strait of Hormuz disruption from US-Iran tensions threatens apparel exports from India and Bangladesh to EU and Middle East. Production costs for brands like Zara, H&M, Gap, Tommy Hilfiger could rise 10-15%; shipping costs 30-50%.
Why this matters
Hormuz exposure adds a fresh chokepoint risk for fast-fashion sourcing already navigating Red Sea reroutes, compressing margins for Zara, H&M and Gap as freight inflation returns.
Retail-brand signals steady at 111 over 90 days, with supply chain cost pressure a recurring driver.