Strait of Hormuz Closure Threatens US Generic Drug Supply

Half of US generic drugs come from India, which relies on the Strait of Hormuz for oil imports needed for pharmaceutical manufacturing.

Mar. 16, 2026 at 11:20am

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The closure of the Strait of Hormuz by Iran could disrupt the supply of generic drugs in the United States, as nearly half of US generic prescriptions come from India, which depends on the strait for around 40% of its crude oil imports. This oil feeds into the petrochemical inputs used throughout pharmaceutical manufacturing. Even when ingredients move directly from China to India, production still relies heavily on petrochemical supplies from the Gulf region. Experts warn that shortages and price increases for critical generic medications like diabetes drugs, hypertension treatments, and antibiotics could start appearing within 4-6 weeks if the strait remains closed.

Why it matters

The disruption of generic drug supply chains through the Strait of Hormuz could have significant public health implications for the United States, as generics make up 90% of prescriptions filled in the country. Any shortages or price increases for these essential medications could severely impact patient access and affordability of healthcare.

The details

Many of the key ingredients and chemical inputs needed to manufacture generic drugs in India travel through logistics hubs in the Gulf region before being shipped to Indian pharmaceutical companies. Even when ingredients move directly from China to India, the production process still relies heavily on petrochemical supplies from the Gulf. Disruptions to oil and petrochemical shipments through the Strait of Hormuz could quickly ripple through global pharmaceutical supply chains, leading to shortages, delays, and higher costs for generic drug manufacturers in India. This could then manifest as shortages and price increases for critical generic medications in the US market.

  • The closure of the Strait of Hormuz by Iran began in March 2026.

The players

Strait of Hormuz

A strategic maritime chokepoint located between the Persian Gulf and the Gulf of Oman, through which a significant portion of the world's crude oil supply is transported.

India

The country that supplies nearly 47% of generic drugs consumed in the United States, and which relies on the Strait of Hormuz for around 40% of its crude oil imports.

United States

The country that gets nearly half of its generic drug prescriptions from India, and which could face shortages and price increases for critical medications if the Strait of Hormuz remains closed.

Rohit Tripathi

Vice president of industry strategy for manufacturing at RELEX Solutions, a supply chain planning software company.

Steve Blough

Chief supply chain strategist at Infios, a supply chain analytics firm.

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What they’re saying

“Even when ingredients move directly from China to India, production still relies heavily on petrochemical supplies from the Gulf. Disruptions around the Strait of Hormuz could quickly ripple into global pharmaceutical supply chains and eventually affect U.S. consumers.”

— Steve Blough, Chief supply chain strategist

“Fuel costs will effect the costs of everything, but the biggest effects will be on generics because they have the tightest margins.”

— Mark Hahn, Former dean, University of Las Vegas medical school

“India and China are the biggest suppliers of generic drugs to the U.S., and prolonged or widening conflict could raise costs for generic firms, leading to higher prices and/or shortages for patients.”

— Dr. William Feldman, Associate professor of medicine, David Geffen School of Medicine at UCLA

What’s next

The U.S. government and pharmaceutical industry are closely monitoring the situation and working to mitigate potential disruptions to the generic drug supply. Some Indian drug companies have also announced plans to invest in U.S. production facilities to reduce reliance on imports.

The takeaway

The closure of the Strait of Hormuz by Iran poses a significant threat to the supply of generic drugs in the United States, as nearly half of all U.S. generic prescriptions come from India, which relies heavily on the strait for oil imports needed in pharmaceutical manufacturing. This highlights the vulnerability of the U.S. healthcare system to global supply chain disruptions and the need for greater supply chain resilience and domestic production capacity for essential medications.