World News for Students of English

16-03-2026 07:00

Lego is preparing for higher costs because energy and basic materials are becoming more expensive due to the conflict in the Middle East.

The company uses oil-based plastic to make its toys, so higher oil prices may slowly increase the cost of production.

The price of crude oil has already risen by about 65% since the US and Israel bombed Iran on February 28. However, Lego says the effect may be slow because it already has supply agreements that help control prices for some time. The company is also dealing with changes in US import taxes. After the Supreme Court removed some earlier tariffs introduced by President Donald Trump, a new general tariff of 10% was announced, and it could rise to 15%.

Lego says its strategy of building factories close to important markets helps reduce risk and keep costs under control. For example, Lego plans to open its first manufacturing plant in the United States, in Virginia, in 2027. Despite these pressures, the family-owned company reported growth in all regions and product groups last year and expects sales to keep growing this year.

Difficult words: crude oil (oil in its natural form before it is cleaned or processed), supply (the amount of something available to use or sell), general (affecting many things or most people, not specific).

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