At least $25 billion has already been lost by companies worldwide due to the US‑Israel war against Iran, with costs continuing to rise, according to a Reuters analysis.
A review of corporate statements since the start of the conflict, covering companies listed in the United States, Europe and Asia, paints a concerning picture of the impact on global business.
Companies are struggling with rising energy prices, disrupted supply chains and blocked trade routes, as Iran tightens control over the Strait of Hormuz.
At least 279 companies have cited the war as a trigger for defensive measures to mitigate financial losses, including price increases and production cuts.
Others have suspended dividends or share buybacks, reduced staff activity, imposed fuel surcharges or sought emergency state support.
The disruption, the latest in a series of global economic shocks following the COVID‑19 pandemic and Russia’s invasion of Ukraine, is weighing on expectations for the rest of the year, with little sign of a deal to end the conflict.
“This level of industrial slowdown is similar to what we observed during the global financial crisis and even worse than in other downturns,” Whirlpool chief executive Marc Bitzer told analysts.
The company halved its full‑year outlook and suspended dividend payments.
As growth slows, revenues are expected to fall, while fixed costs will become harder to absorb, analysts say, threatening profit margins into the second quarter and beyond.
Continuous price increases are also likely to feed inflation, further weakening already fragile consumer confidence.
“Consumers are hesitant to replace products and are more likely to repair them,” Bitzer said.
Nearly 40 companies in industrial, chemical and materials sectors said they would raise prices due to exposure to petrochemical supplies from the Middle East.
Newell Brands finance chief Mark Erceg said earlier this month that every $5 increase in oil prices per barrel adds around $5 million in costs.
German tyre manufacturer Continental expects a hit of at least €100 million from the second quarter due to rising oil prices driving up raw material costs.
Chief executive Roland Welzbacher said it would take three to four months before the effects fully appear in the company’s financial results. “It will likely hit us late in the second quarter and then fully materialise in the second half,” he said.
Source: CNA
