The Iran war has cost global companies at least $25 billion - report
Airlines account for nearly $15 billion of the toll, while 279 companies have raised prices, cut production, or slashed forecasts as Iran's Strait of Hormuz blockade pushes oil above $100 a barrel
The US-Israeli war with Iran has cost companies around the world at least $25 billion to date, with the bill continuing to climb as the conflict enters its third month, according to a Reuters analysis.
A review of corporate statements since the start of the conflict by firms listed in the US, Europe, and Asia found that businesses are grappling with soaring energy prices, fractured supply chains, and trade routes severed by Iran's blockade of the Strait of Hormuz, according to the Reuters report.
At least 279 companies have cited the war as a trigger for defensive measures, including price increases, production cuts, suspended dividends and buybacks, staff furloughs, fuel surcharges, and requests for emergency government assistance.
Iran's closure of the Strait of Hormuz, the world's most critical energy chokepoint, has pushed oil prices above $100 a barrel, more than 50 percent higher than before the war. The blockade has driven up shipping costs and squeezed supplies of raw materials, including fertilizers, helium, aluminum, and polyethylene, the report said.
Airlines account for the largest share of quantified war-related costs, representing nearly $15 billion, with jet fuel prices having nearly doubled. Toyota warned of a $4.3 billion hit, while Procter & Gamble estimated a $1 billion post-tax profit blow.
McDonald's said earlier this month it expected higher long-term cost inflation from ongoing supply-chain disruptions, with CEO Chris Kempczinski citing fuel prices as hurting lower-income consumer demand. "Elevated gas prices are the core issue we're seeing right now," he said.
Nearly 40 companies in the industrials, chemicals, and materials sectors have said they would raise prices due to their exposure to Middle Eastern petrochemical supply. German tiremaker Continental expects a hit of at least 100 million euros ($117 million) from the second quarter due to surging oil prices, the report said.
A majority of affected companies were based in the UK and Europe, where energy costs were already elevated, while almost a third were from Asia, reflecting both regions' deep reliance on Middle Eastern oil and fuel products.
Analysts say the full earnings hit has yet to materialize. "The true earnings hit has not yet materialized in most companies' results," said Rami Sarafa, CEO of Cordoba Advisory Partners.