World News for Students of English

16-03-2026 07:00

Lego may face higher costs because energy and materials are getting more expensive during the conflict in the Middle East.

Oil prices increased by about 65% since the US and Israel bombed Iran. Lego uses plastic made from oil, so making toys could slowly become more expensive. However, the company says current supply deals may slow down the effect.

Lego is also dealing with new import taxes in the United States. A tax of 10% could increase to 15%, which would make the products more expensive. To reduce costs, Lego builds factories close to its main markets. The company plans to open its first factory in the United States, in Virginia, in 2027.

Even with these problems, Lego reported growth last year and expects to continue growing this year.

Difficult words: costs (the money you need to make, buy, or do something), supply (the amount of something available to use or sell), growth (when something becomes bigger or more successful).

You can watch the original video in the Level 3 section.