A Reuters analysis showed that the US-Israeli war on Iran has cost companies around the world at least $25 billion, a figure that continues to grow.
اضافة اعلان
A review of data released since the outbreak of the war by companies listed in the United States, Europe, and Asia offers a realistic look at its fallout. Corporations are suffering from skyrocketing energy prices, disrupted supply chains, and severed trade routes resulting from Iran's control over the Strait of Hormuz.
The analysis revealed that at least 279 companies cited the war among the reasons that prompted them to take measures to mitigate the financial impact, including raising prices and cutting production. Other firms suspended cash dividend payouts or stock buyback operations, laid off staff, imposed fuel surcharges, or sought emergency aid from governments.
These disruptions—the latest in a series of global events rattling corporations following the COVID-19 pandemic and the Russia-Ukraine war—are lowering forecasts for the remainder of the year, with little to no signs of an imminent agreement to end the war.
"The level of decline in the industrial sector is comparable to what we witnessed during the global financial crisis, and even surpasses what we saw during other periods of recession," Marc Bitzer, CEO of the US home appliance company Whirlpool, told analysts after the company slashed its full-year forecasts and suspended cash dividends.
Analysts believe that pricing power will weaken amid slowing growth, and absorbing fixed costs will become more difficult, threatening profit margins in the second quarter and beyond. Sustained price hikes are likely to fuel inflation, damaging an already fragile consumer confidence.
"Consumers are holding back on replacing products, preferring to repair them instead," Bitzer added.
Rising Costs
Whirlpool is not alone in facing difficulties. Other giants, including Procter & Gamble, Cyren, and Toyota, have all warned of the mounting toll as the crisis enters its third month.
Iran keeping the Strait of Hormuz virtually closed has caused oil prices to surge past $100 a barrel, a more than 50% increase compared to pre-war levels.
This closure has also driven up shipping costs, squeezed the supply of raw materials, and cut off vital trade arteries for the flow of goods. Supplies of fertilizers, helium, aluminum, polyethylene, and other key inputs have been severely impacted.
Among the companies reviewed—which manufacture almost everything from cosmetics to tires and detergents, and even include travel, tourism, and aviation firms—20% indicated they have suffered a financial blow due to the war.
The majority of these companies are based in Britain and Europe, where energy costs were already elevated prior to this latest crisis. Nearly a third are from Asia, underscoring these regions' heavy reliance on oil products and fuel from the Middle East.
Almost the Same Impact as Tariffs
To put this figure into context, by last October, hundreds of companies had cited costs exceeding $35 billion as a result of the tariffs imposed by US President Donald Trump in 2025.
Airlines bore the lion's share of the quantifiable costs related to the war, estimated at $15 billion, as jet fuel prices nearly doubled. More companies from other sectors are sounding the alarm as the crisis drags on.
Japan's Toyota warned of a $4.3 billion loss, while Procter & Gamble estimated a post-tax profit loss of $1 billion.
Fast-food giant McDonald’s predicted earlier this month a rise in long-term cost inflation as a result of ongoing supply chain disruptions—a type of assessment that was, until recently, confined to the earnings conferences of industrial corporations.
CEO Chris Kempczinski said the sharp rise in fuel prices is hurting demand among low-income consumers, adding that "soaring gasoline prices are the core issue we are observing right now."
Sensitivity to Oil Prices
Around 40 companies in the industrial, chemical, and materials sectors announced they would raise prices due to their reliance on petrochemical supplies from the Middle East.
Mark Erceg, CFO of Newell Brands, said earlier this month that every $5 increase in the price of a barrel of oil adds about $5 million to costs.
German tire manufacturer Continental expects a loss of at least 100 million euros ($117 million) by the second quarter due to rising oil prices, which drive up the cost of raw materials.
Roland Welzbacher, an executive director at Continental, said earlier this month that it would take three to four months before the impact hits the company's profit and loss statements. "Its impact on us is likely to appear in late Q2, and will then peak in the second half of the year," he added.
(Reuters)
