The effects of the conflict in the Middle East

Published: 2026-03-04 12:55:03 • Daniel Gårdefelt

Few have missed the recent escalation of the conflict in the Middle East, and perhaps most notably in Iran. This has also affected the macroeconomic situation, with declines in several stock markets and rising commodity prices, including oil. In addition to this, there is a noticeable impact on logistics, which may affect HYAB Magneter's customers.

The Suez Canal, which has long been prone to difficulties in recent years, is now still threatened by the flare-up of the conflict. Ship freight, which has already had extended lead times of up to three months, will continue to be prolonged as ships need to circumnavigate the African continent.

A large portion of air freight from Asia to Europe is also expected to become more expensive, as several airports have been closed due to the ongoing conflict. The rising oil price may also lead to higher transportation costs.

As mentioned earlier, the price of raw materials for certain types of magnets, such as neodymium, has more than doubled over the past year. Ferrite magnets may now also be affected as a consequence of the conflict, as an important raw material used in Ferrite, celestite, is largely mined in Iran. The effect has not yet been felt in production but is expected to be taken into account in the near future.

Despite these external factors, HYAB continues to maintain close relationships with our suppliers around the world and keeps us updated on developments so that we can offer our customers the same high level of service as before.

Are you interested in hearing more about how the external environment will affect your business, or how HYAB is working to mitigate the situation? Contact us at +46 8 26 10 80 or [email protected] and we will tell you more.