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Iran War Triples Logistics Costs for Oil Services Firms
oilprice.com · November 3, 2026 · Week 2026-45
Summary
A nine-month conflict involving Iran is causing severe financial strain on oilfield service and EPC companies in the Middle East, with executives at ADIPEC reporting logistics costs have tripled and labor costs have risen by up to 40%. The war is disrupting equipment deliveries, particularly through the Strait of Hormuz, squeezing contractor margins and threatening project timelines for firms like Maire Tecnimont, Saipem, SLB, and Baker Hughes.
Strategic Implication
The escalating operational costs and logistical bottlenecks from the conflict are eroding contractor profitability, threatening the viability and schedule of major energy projects across the Gulf.