Airlines endured the brunt of the impact, accumulating nearly $15 billion in extra expenses. A total of 279 firms implemented diverse tactics to mitigate financial setbacks, with European entities being twice as hard hit as others.
The conflict between the United States and Israel against Iran has already cost global corporations a minimum of $25 billion in unforeseen expenditures, a figure that continues to climb, as revealed by a Reuters analysis drawing upon corporate statements and P&L reports.
The agency scrutinized disclosures from publicly traded companies listed in the US, Europe, and Asia. These entities have been compelled to contend with surging energy costs, disruptions to supply chains, and fractured trade routes due to Iranian control over the Strait of Hormuz, the publication noted. Firms headquartered in Europe (130) revised their outlooks downwards more than twice as often as those in Asia (61) and the US (59). The repercussions also affected 18 corporations studied from Australia/New Zealand and seven from other global regions.
The scrutiny demonstrated that at least 279 companies cited the war as the justification for enacting various internal measures designed to soften the financial blow. These adjustments included price hikes and production cuts, halting dividend payouts or share buybacks, placing staff on unpaid leave, workforce reductions—even at executive levels—declaring force majeure, shuttering retail locations, imposing fuel surcharges, or seeking emergency government assistance.
One-fifth of all companies whose financial results were analyzed—ranging from makers of cosmetics, tires, and detergents to cruise operators and airlines—reported losses attributable to the US-Iran war. The majority of the corporations incurring losses were situated in the UK and Europe, where energy prices were already elevated, with nearly a third based in Asia. This pattern underscores these regions’ significant reliance on Middle Eastern petroleum products, Reuters observes.
According to the agency’s assessment, airlines (45 in the analysis), chemical producers (32), and consumer staples manufacturers (29) suffered the most severe consequences. The oil and gas extraction sector (28), automakers (22), and logistics firms (16) were also significantly impacted, alongside suppliers of materials, retailers, financial firms, and other sectors. Airlines accounted for the largest portion of increased outlay—approximately $15 billion—primarily due to soaring fuel costs. Following them in the negative ranking were automakers and their suppliers ($5.5 billion), consumer goods producers ($2.4 billion), and cruise operators/maritime transport companies ($1.36 billion).
Toyota projected losses amounting to $4.3 billion, while P&G estimated its after-tax profit reduction at $1 billion.
“This level of downturn across the industry mirrors what we saw during the global financial crisis, and is even steeper than other recessionary periods,” stated Mark Bitzer, CEO of Whirlpool, the US’s leading home appliance manufacturer, to analysts after the company halved its annual forecast and suspended dividend payments. He lamented that consumers, facing economic strain, were increasingly opting to repair existing items rather than purchase new ones.
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