Why Rising Oil Prices Are Changing the Conversation Around Building Materials

Global events have a way of revealing how connected modern construction is to fossil fuels.

As oil prices rise following the escalation around Iran and the Strait of Hormuz, many industries are starting to feel the effects. Unfortunately, our industry, construction, is one of them.

A surprising number of modern building materials rely heavily on petrochemicals, particularly insulation products like PIR boards. When oil prices rise, those materials become more expensive not only because transport and manufacturing costs increase, but because the materials themselves are directly tied to fossil fuel feedstocks.

At the same time, major oil companies continue to report enormous profits during periods of instability, while households and builders absorb the rising costs. It highlights how dependent many parts of the economy still are on volatile global energy systems.

 At Hoose, we’ve always tried to take a different approach.

 We prefer to use natural and biogenic materials, including wood fibre and natural fibre insulation. Originally, this was driven by performance, environmental impact and creating healthier buildings that manage moisture and comfort more naturally, but historically, it’s had a negative impact on cost.

 Natural materials have generally carried a premium when compared with petrochemical alternatives like PIR insulation, even when they offered better long-term performance and lower embodied carbon.

 But that gap is narrowing, spurred on even more by the closure of the Strait of Hormuz.

 Before the recent rise in oil prices, we had already been comparing insulation build-ups for high-performance homes and found that, in some situations, combinations of wood fibre insulation and products from brands like Sisalwool were becoming increasingly cost-competitive compared to more conventional insulation systems.

In some cases, the difference was marginal enough that material choice became less about upfront cost and more about long-term performance, resilience and carbon impact.

 With oil prices continuing to fluctuate, that shift is becoming even more noticeable.

Natural materials are still affected by transport and energy costs, but they’re generally less exposed to fossil fuel feedstock pricing than petrochemical products. The result is that the additional cost of building with biogenic materials is becoming smaller than many people realise. For us, this only reinforces the direction we’ve already been heading.

At Hoose, we believe the future of construction will belong to buildings that are lower-carbon, less dependent on volatile global supply chains, and built from materials that work for both people and the planet, rather than against them.

 That’s why we continue to focus on fabric-first design, natural materials and local supply chains wherever possible. Not simply because they reduce environmental impact, but because they create homes that are healthier, more comfortable and more resilient over the long-term.

 For years, regenerative building has often been treated as an expensive alternative. Increasingly, we’re seeing that it may simply be the smarter one.

The industry is slowly rediscovering something that should never really have been forgotten: buildings perform best when they are shaped by their environment, built with honest materials, and designed to last.

 That’s the future we’re trying to help build at Hoose.

 And with every project, it feels less like an alternative approach and more like the direction construction inevitably needs to move towards.

Discover more about Sisalwool here.