Currie & Brown: Construction costs could still rise despite Middle East agreement

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24 Jun, 2026, 07:00 GMT

LONDON, June 24, 2026 /PRNewswire/ -- New research from Currie & Brown, a world-leading provider of cost management, project management and advisory services, suggests ongoing oil price volatility will increase construction costs globally, with data centre projects among the most exposed.

Despite the recent deal between the US and Iran, the conflict in the Middle East will have a long tail. Uncertainty remains, and construction will continue to feel the impact for some time.

The research found that higher oil price scenarios will increase the cost of key construction materials, including steel, copper and aluminium, with effects varying by market and project type.

Data centre projects could see some of the greatest impacts, with cost increases as follows:

India: up to 13%
Thailand: up to 5.5%
UAE: up to 9.9%
UK: up to 6.8%
US: up to 8.5%

Hotel projects show a similar pattern:

India: up to 12%
Thailand: up to 5.7%
UAE: up to 9.5%
UK: up to 7.0%
US: up to 8.2%

The impact extends beyond material costs. Rising energy prices can affect manufacturing, transportation, procurement and the availability of specialist equipment, putting more pressure on project delivery.

Alan Manuel, Group Chief Executive Officer, Currie & Brown, said:

"A peace deal in the Middle East is welcome, but the future remains uncertain and the impact will be significant. We are forecasting cost increases for key construction materials in most markets as the effects of the oil price spike work their way through supply chains.

"Disruption is becoming a more regular feature of the environment. Whether it is geopolitics, trade policy or supply chain disruption, market conditions can change quickly, with little warning.

"Organisations that understand where projects are most sensitive to change and build flexibility into their plans from the outset will be best placed to respond."

While the impact will vary between markets, the research highlights the importance of early planning, robust procurement strategies and a clear understanding of project priorities. In sectors such as data centres, where speed to market remains critical, and hotels, where long-term asset value is paramount, those decisions can have a significant influence on project success.