Construction costs rise 34% due to conflict in Iran

The National Association of Independent Builders (ANCI) reports that the conflict in Iran has triggered a 34% increase in the prices of bituminous materials and energy between January and August 2026. This surge is driven by geopolitical uncertainty and instability affecting the flow of raw materials through the Strait of Hormuz.

Other construction materials have also seen significant price hikes due to rising production and transport costs, including aluminum (19%), corrugated steel (18%), ceramic materials (12%), and copper (11%). ANCI warns that the rise in inflation, which reached 4.9% in September, is expected to impact labor costs in the short term.

The association has called for “urgent and exceptional” measures to support contractors who were unable to incorporate these unpredictable costs into their initial bids, noting similarities to the economic crisis seen in 2021-2022.