4 Reasons Your Next Old Navy Visit Could Cost More
Written by
Heather Altamirano
Edited by
Rebekah Evans
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The next time you’re shopping at Old Navy or any retailer, you might notice prices a little higher — in part because many clothing items are made from common synthetic fabrics like polyester, nylon and spandex, which are derived from petrochemicals.
That matters for your wallet because when geopolitical tensions arise in oil-producing regions like Iran, crude oil prices spike and retail prices may rise. Experts explain why below.
The Strait of Hormuz Is Crucial
The Strait of Hormuz is a sea passage between the Persian Gulf and the Gulf of Oman. As of March 10, 2026, the area has been disrupted by the conflict, according to CNBC, which may drive up retail prices.
“The Strait of Hormuz is one of the world’s most important energy choke points because roughly 20% of the world’s oil passes through,” said Arjan Singh, founder and managing partner of Corporate War Games. “Higher oil prices directly increase the cost of producing synthetic fabrics, because the feed stock (petrochemicals) becomes more expensive.”
Items that could be pricier include athletic wear such as leggings, swimwear, sweaters and tops that are made from synthetic fabrics.
Manufacturing Prices Will Jump
Many retailers manufacture apparel overseas, including Old Navy, which has factories in China, Vietnam and several other Asian countries, according to Gap Inc.
“Supply chains from Asia to the U.S. could slow or shut down altogether, [if the Strait is disrupted],” said Danny Ray, founder of PinnacleQuote. “Inflation could get another nasty jolt. Even if we’re not the direct buyer, we’re still deeply connected, because China’s cost increase becomes our cost increase.”
Manufacturing costs in the U.S. are also at risk for higher prices, Singh said.
“Many rely on imported intermediate goods such as chemicals, fabrics, packaging materials and machine components,” he explained.
Freight Costs Will Increase
As the conflict intensifies, Maersk, one of the world’s largest container shipping companies, warned that disruptions in the Strait of Hormuz are driving up fuel and freight costs, which have already jumped $1,800 to $3,800 per container.
“When geopolitical tensions rise, shipping companies often face higher insurance costs, vessels may be rerouted or experience longer transit times and container capacity can tighten as schedules shift,” Singh said.
But retailers often wait to pass on this cost to consumers; they “hedge fuel or have inventory already in the pipeline,” he explained.
If disruptions continue, price increases typically happen “within one or two retail cycles, especially in categories such as apparel, footwear and household goods,” Singh added.
The Cost of Raw Materials Will Spike
A disruption in the Strait will also raise raw material costs.
“Oil price spikes increase the cost of petrochemical feed stocks used in plastics, fibers, packaging and a wide range of consumer products,” Singh said.
But, customers won’t experience sticker shock right away. Singh said the impact is gradual and shoppers are “more likely to see incremental price increases across multiple product categories over time.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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