The US-Israeli war against Iran has cost companies around the world at least $25 billion — and the losses continue to mount.
This was found out by Reuters after analyzing the statements and financial reports of corporations whose shares are traded on US, European and Asian exchanges.
The media notes that since the escalation in the Middle East began, companies have been forced to contend with skyrocketing energy prices, disrupted supply chains, and the closure of trade routes due to Iranʼs blockade of the Strait of Hormuz.
In particular, due to the blockade of one of the worldʼs key oil transportation routes, world oil prices have exceeded $100 per barrel. This is more than 50% higher than before the war began in late February.
At least 279 companies have introduced anti-crisis measures due to the war: they have raised product prices, reduced production, suspended dividends, placed employees on unpaid leave, and applied for emergency government assistance.
A fifth of all companies surveyed by Reuters, from cosmetics, tires and detergents to cruise operators and airlines, reported financial losses due to the war in the Middle East. Most of the corporations that suffered losses are based in the UK and Europe, and almost a third are in Asia.
The aviation industry has been hit hardest by the war. A Reuters analysis includes 45 airlines, which have incurred about $15 billion in additional costs, mostly due to higher jet fuel prices.
This is followed by automakers and auto component suppliers with combined losses of about $5.5 billion, manufacturers of consumer goods with approximately $2.4 billion, and cruise operators and shipping companies with losses of about $1.36 billion.
Some large corporations have already warned of a significant financial hit. In particular, Toyota estimates potential losses at $4.3 billion, and Procter & Gamble predicts a reduction in after-tax profit of about $1 billion.
Some executives, particularly in the manufacturing sector, are warning that rising prices could further hit consumer demand, while companies are starting to revise their long-term forecasts due to rising fuel and logistics costs.
Among the most vulnerable sectors are the manufacturing of industrial goods and the chemicals industry. About 40 companies have already announced their intention to raise prices due to their dependence on petrochemical raw materials from the Middle East.
The chief financial officer of Newell Brands (NWL.O), a U.S. consumer goods maker, said that every $5 per barrel increase in the price of oil increases the companyʼs costs by about $5 million.
In general, experts note that the main financial blow has not yet been fully reflected in companiesʼ reporting, and the greatest effect of the war on global business may appear in the coming quarters.
War in the Middle East and negotiations between Iran and the US
On the morning of February 28, the United States and Israel launched attacks on Iran. These attacks killed Iranʼs Supreme Leader Ayatollah Ali Khamenei and almost the entire military leadership of the country — about 40 key high-ranking officials.
Iran, in response to the US and Israeli attacks, began shelling Arab countries and Israel. The war also halted tanker traffic through the Strait of Hormuz, a narrow sea corridor between Iran and Oman that connects the Persian Gulf to the Indian Ocean. It was through it that almost a fifth of the worldʼs oil exports passed — tens of millions of barrels a day.
On April 8, the parties agreed to a two-week ceasefire. On April 13, the United States began a naval blockade of Iranian ports, demanding the complete unblocking of the Strait of Hormuz for all ships.
On April 17, Lebanon and Israel agreed to a ceasefire, after which Iran unblocked the Strait of Hormuz. However, on April 18, Iran announced that it was again blocking the Strait of Hormuz due to the US naval blockade. On the same day , Iran fired on several ships attempting to pass through the strait.
On April 21, Trump tweeted that he had extended the ceasefire with Iran until the Iranians submitted their proposals and concluded discussions. And on May 1, Axios reported, citing a letter from Trump to House Speaker Mike Johnson, that Trump considered the war over.
Despite this, on May 8, Iran accused the US of violating the ceasefire by attacking two ships in the Strait of Hormuz and striking civilian areas. But there is no talk of a breakdown yet.
At the end of April, the Pentagon reported that the US had spent $25 billion on the war. Most of this money went to ammunition.
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