Home Business NewsSupply chain fears surge as UK firms warn of lasting Iran conflict disruption

Supply chain fears surge as UK firms warn of lasting Iran conflict disruption

by LLB staff reporter
14th Apr 26 11:54 am

The latest Office for National Statistics (ONS) Business Insights survey reveals a significant surge in concern among businesses in the transport & storage sector about the impact of global conflict.

The international delivery expert ParcelHero says the war in Iran has created a record spike in the number of businesses reporting concerns.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘The latest Business Insights survey, held between 16-29 March, found that a hefty 29.4% of transport & storage sector businesses (the category which includes logistics, parcels, haulage and warehousing employers) are concerned about the impact of international conflict on their supply chains over the next 12 months. A significant 15.2% are similarly concerned about the impact of shipping disruption.

‘These results follow the USA and Israel’s surprise attack on Iran at the end of February and the resulting conflict across the Middle East. The repercussions included the effective closure of the Straits of Hormuz, a vital shipping lane.

‘This represents a huge escalation in the number of businesses expressing worry over these issues. In December 2025, only 6.5% of transport & storage companies expressed anxiety about the impact of international conflict on their business and a tiny 5.4% about the resulting potential shipping disruption.

‘That represents an unprecedented jump of 22.9 percentage points in the number of transport & storage firms concerned about international conflict in just four months. Similarly, the 9.8 percentage point increase in transport & storage companies anxious about the impact of supply chain disruption represents a sharp increase.

‘However, although many transport & storage sector companies are undoubtedly worried, even more of their manufacturing and retail sector partners are concerned. A huge 42.3% of all manufacturers taking part in the survey are concerned about the impact of international conflict on their business and 28.7% about supply chain disruption. Similarly, a hefty 39.4% of retailers are concerned about the impact of conflict on their business and 31.8% about resulting supply chain disruption.

‘To put those responses into perspective, last December only 13.8% of manufacturers and 15.6% of retailers were concerned about international conflict, and just 6.1% of manufacturers and 14.8% of retailers were worried about supply chain disruption. That whopping 28.5 percentage point increase in the number of manufacturers concerned about international conflict highlights how worried British businesses have suddenly become over increasing global uncertainty.

‘The fragile ceasefire between the US and Iran will have come as a welcome respite for many UK businesses that have been impacted by the conflict. However, international supply chains face continued increased costs and disruption for months, even if the truce holds.’

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