The U.S.-Israeli war with Iran has inflicted at least $25 billion in costs on companies worldwide, according to a Reuters analysis, as businesses struggle with surging energy prices, disrupted supply chains and trade routes constrained by instability in the Strait of Hormuz.
A review of corporate statements from firms listed in the United States, Europe and Asia shows at least 279 companies have taken defensive measures in response to the conflict. These include price increases, production cuts, suspended dividends and share buybacks, furloughs, fuel surcharges and requests for government assistance.
Analysts say the disruption, now entering its third month, is reshaping global business expectations for the remainder of the year, with no clear end to the conflict in sight.
“This level of industry decline is similar to what we have observed during the global financial crisis and even higher than during other recessionary periods,” Whirlpool CEO Marc Bitzer said after the company cut its full-year forecast and suspended its dividend.
Rising costs across industries
Companies including Procter & Gamble, Toyota and Malaysian condom maker Karex have all warned of financial pressure from higher energy and input costs.
Iran’s blockade of the Strait of Hormuz — a key global energy route — has pushed oil prices above $100 per barrel, more than 50% higher than before the war began. The surge has driven up shipping costs, tightened raw material supplies and disrupted trade routes for essential goods including fertilizers, aluminum and petrochemicals.
One-fifth of companies in the analysis reported direct financial impacts from the conflict, with the majority based in Europe and the UK, and nearly a third in Asia.
Airlines account for the largest share of quantified losses, with nearly $15 billion in additional fuel costs alone. Automakers and consumer goods companies have also reported significant exposure.
Toyota warned of a $4.3 billion hit, while Procter & Gamble estimated a $1 billion post-tax profit impact.
Fast-food chain McDonald’s said it expects long-term inflationary pressure as supply-chain disruptions persist, with higher fuel costs reducing consumer spending, particularly among lower-income households.
Price increases and margin pressure
Nearly 40 companies in industrials, chemicals and materials have announced plans to raise prices due to rising costs tied to Middle Eastern petrochemical supply.
Some firms reported specific cost sensitivities, including Newell Brands, which said every $5 increase in oil prices adds about $5 million in costs.
German tyre manufacturer Continental expects at least €100 million in additional costs due to higher raw material prices, with the impact expected to fully hit earnings in the second half of the year.
Analysts say much of the financial strain has not yet fully appeared in corporate earnings, as companies are still working through hedging strategies and earlier pricing agreements.
FactSet data show second-quarter profit margin forecasts have already been reduced across major U.S. indices, with further downward revisions expected in Europe and Japan.
“The true earnings hit has not yet materialized in most companies’ results,” said Rami Sarafa, CEO of Cordoba Advisory Partners.
Airlines face the heaviest burden
Airlines have been the most affected sector, absorbing around $15 billion in additional fuel costs. Analysts say rising jet fuel prices — nearly double pre-war levels — have had a disproportionate impact on the industry compared with automakers and consumer goods companies combined.
The broader corporate impact, now exceeding $25 billion, is expected to continue rising as higher costs filter through supply chains and reach consumers in the coming months.
