The ongoing conflict between the United States (US), Israel, and Iran has caused global corporate losses exceeding $25 billion, according to an analysis of corporate statements from listed companies in the US, Europe, and Asia.
The financial damage stems from rising energy prices, disrupted supply chains, and severed trade routes caused by Iran’s blockade of the Strait of Hormuz.
In response, at least 279 companies have implemented defensive measures, including production cuts, price hikes, fuel surcharges, suspended dividends, paused stock buybacks, employee furloughs.
The economic disruption follows previous global challenges, including the Covid-19 pandemic and Russia’s invasion of Ukraine. Corporate executives expect the impact to persist due to the lack of a conflict resolution.
Whirlpool Chief Executive Officer (CEO) Marc Bitzer stated that “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”.
Bitzer noted that the company halved its full-year forecast and suspended its dividend, adding that “consumers are holding back on replacing products and rather repairing them”.
Analysts predict that slowing economic growth will weaken corporate pricing power and make fixed costs harder to absorb, threatening profit margins from the second quarter onward.
Companies such as Procter & Gamble, Malaysian condom manufacturer Karex, and Toyota have issued warnings regarding the financial impact.
Iran’s blockade of the Strait of Hormuz has caused oil prices to rise above $100 a barrel, representing a 50 percent increase from pre-war levels.
This closure has raised shipping costs and reduced supplies of raw materials like fertilisers, helium, aluminium, and polyethylene. One-fifth of the surveyed companies spanning cosmetics, tyres, detergents, cruise operations, and airlines reported financial losses.
A majority of these impacted businesses are located in the United Kingdom (UK) and Europe, while nearly one-third are based in Asia, driven by regional dependence on Middle Eastern oil.
By comparison, hundreds of companies had flagged over $35 billion in costs by October last year due to US President Donald Trump’s 2025 tariffs.
Airlines have sustained the largest quantified share of war-related costs at nearly $15 billion, driven by a near-doubling of jet fuel prices.
In other sectors, Toyota projected a $4.3 billion loss, while Procter & Gamble estimated a $1 billion reduction in post-tax profits.
McDonald’s CEO Chris Kempczinski stated that the fast-food chain expects higher long-term cost inflation due to supply chain disruptions. Kempczinski noted that “elevated gas prices are the core issue we’re seeing right now,” which is impacting demand among lower-income consumers.
Nearly 40 companies in the industrial, chemical, and materials sectors announced plans to raise prices due to their exposure to Middle Eastern petrochemical supplies.
Newell Brands Chief Financial Officer Mark Erceg stated that every $5 increase in the price of a barrel of oil adds roughly $5 million in corporate costs.
While corporate profits remained stable through the first quarter, helping indexes like the S&P 500 reach new highs, forward-looking metrics indicate downward adjustments.
Goldman Sachs analysts stated that European STOXX 600-listed companies will experience margin pressure in the second quarter as financial hedges expire and passing costs to consumers becomes more difficult.
Cordoba Advisory Partners CEO Rami Sarafa stated that “the true earnings hit has not yet materialised in most companies’ results”.
