Middle East conflict drives construction material prices up; firms adopt price review clauses

A survey of 200 construction firms shows 72% expect price increases averaging 8% by end-2026, with 81% attributing this to the Middle East conflict. Material costs have surged: plastics +20%, non-ferrous metals +32.6%, steel +13.6%, bricks +11%, and aggregates +13.2%. This signals sustained input-cost inflation for construction, prompting wider use of price review clauses to mitigate margin pressure.