Consumer goods giant Reckitt Benckiser has cautioned that it faces a potential cost impact of up to £150 million should oil prices remain elevated amid the Iran conflict, warning that consumer spending would also take a hit.

The maker of Dettol and Durex said that if oil prices hold at 110 US dollars a barrel (£81.33) throughout 2026, the group could be saddled with somewhere between £130 million and £150 million in additional costs.

The company, which has sites in Hull and Slough, described this as a “manageable level” that could be offset through measures including supply chain flexibility and pricing adjustments.

The group added: “While challenging to forecast, if commodity prices remain at significantly elevated levels throughout the year we would anticipate an impact on consumer demand as a result of pressure on household budgets.”

Shares in the FTSE 100 company fell by more than 5% in early trading on Wednesday.

Reckitt posted revenues climbing 0.6% on a like-for-like basis in its first quarter, as price increases counterbalanced a 2% decline in sales volumes.

Its core business, excluding the Mead Johnson Nutrition division, saw growth decelerate sharply to 1.3% from 5.9% in the preceding three months, hampered by a subdued cold and flu season worldwide, tough trading conditions across Europe and disruption stemming from the Middle East conflict.

Despite this, Reckitt said it remains on course to meet its full-year guidance of like-for-like net sales growth of between 4% and 5%. The group cautioned that profit margins are forecast to fall in the first half of the year, partly as a result of the financial impact of the Iran war, though this is expected to be offset by a stronger performance in the second half.

Chief executive Kris Licht said: “We maintain our like-for-like net revenue guidance for 2026.

“This will be driven by sequential growth from our market-leading Powerbrands, as the season resets and we continue to launch superior innovations including Mucinex 12-hour Cold and Fever, improved performance in Europe and continued strong growth across China, India and non-seasonal North America.”