Brazilian pulp giant Suzano SUZB3.SA said on Friday that global prices will rise for toilet paper, tissues and diapers as companies seek to cover the higher costs of transportation and chemicals if the U.S.-Israeli war on Iran continues.

Suzano, which has a market capitalization of over $60 billion, is the world's biggest producer of pulp used to make Kimberly-Clark's KMB.O Cottonelle toilet paper, Kleenex tissues, sanitary pads, diapers and cardboard packaging for everyday items.

The Iran war has led to a surge in oil prices and driven up Suzano's costs of shipping, trucking, rail and chemicals.

"There is for sure an increase in cost to the whole system, the whole value chain," Paulo Leime, Suzano's managing director for Europe, the Middle East and Africa, told Reuters.

"(It) will put pressure on paper prices," Leime said. "If this crisis continues...inflation should be back across multiple products, not only paper and tissue."

He did not elaborate on the timeline for when prices could start to rise. His comments are part of widely expressed concerns that soaring prices of food, petrol and basic goods will stoke inflation, adding pressure on households.

He added that Suzano has hedged against price increases for some raw materials, including oil, but indirect costs are also rising for chemicals key to pulp production, including caustic soda and sulphuric acid.

He also cautioned that there has been a "significant impact" on business in the Middle East where it has a large share of the markets in Dubai, Abu Dhabi, Bahrain and Qatar.

Soaring energy prices are particularly painful for the pulp sector, the fourth-most energy-intensive industry. The company's shares have fallen more than 15% since the start of the war.

Leime said Suzano's production would not be impacted by higher energy prices because its industrial sites are 100% energy self-sufficient.

"Major impacts are on the cost of fuel," Leime said.

Suzano is now shipping pulp intended for the Middle East via the Mediterranean, crossing the Suez Canal and paying for "expensive" trucking through Saudi Arabia and Jordan, Leime said.