The Strait of Hormuz shut down last month has halted construction worldwide, as oil‑derived products like paint, insulation and PVC pipe surge in price. Builders in Japan, India, Australia and the UK report delays, with some projects pushed back by weeks and cost overruns reaching A$50,000 per new home.

Supply chain snags have rattled the industry, which accounts for roughly 13 % of global GDP. Maeda Housing in Hiroshima notes a 25 % slowdown in project starts, while Lodha Developers in Mumbai cites a 5 % rise in construction costs since the conflict began. Australia’s 1.2 million‑home target faces a 36 % jump in pipe prices.

With contractors warning of 10‑30 % price hikes over the next quarter, insolvency risk climbs. The Construction Products Association predicts a wave of failures, and Japanese firms such as Tomiso cannot pass costs to clients. The slowdown underscores the sector’s vulnerability to geopolitical shocks and the need for diversified supply chains.