The blocking of the Strait of Hormuz by Iran could affect the supply of medicines in the USA

The blockage of the Strait of Hormuz by Iran could have severe consequences on oil prices and global supply chains, including in the pharmaceutical industry.

Almost 50% of generic drugs in the U.S. come from India, which relies on the Strait of Hormuz for 40% of its oil imports, essential for pharmaceutical production. Disruptions in this region could lead to increased costs and shortages of medications in the U.S., especially for generic drugs, which have low profit margins. Fuel costs affect the price of all products, and some pharmaceutical ingredients are directly linked to the oil industry. Tensions in supply chains have begun to emerge, with significant increases in air freight rates. Although there are no reasons for short-term panic, and buffer stocks are sufficient for 30-60 days, experts warn that a prolonged disruption could affect the availability of essential medications.

American pharmacies are not reporting any issues yet, but concerns are growing regarding the long-term impact of tensions in the region.