The US-Israeli war with Iran has already cost companies around the world at least $25 billion – and the bill is rising, according to a Reuters analysis.
A review of corporate statements since the start of the conflict from listed companies in the United States, Europe, and Asia provides an in-depth look at the consequences.
Businesses are grappling with rising energy prices and trade routes disrupted by Iran’s control of the Strait of Hormuz.
At least 279 companies have cited the war as a reason for defensive actions to cushion the financial blow, including raising prices and reducing production, the analysis shows.
Others have laid off staff, added fuel surcharges or requested emergency government assistance.
The unrest – the latest in a series of global events worrying business following the COVID-19 pandemic and Russian aggression in Ukraine – is dampening expectations for the rest of the year, with little sense that a deal to end the conflict is imminent.
Iran’s blockade of the Strait of Hormuz – the world’s most critical energy hotspot – has pushed oil prices above $100 a barrel, more than 50% higher than before the war.
The lockdown has increased transportation costs, reduced supplies of raw materials, and cut off vital trade routes for the flow of goods.
Also, a fifth of the companies under review – which produce everything from cosmetics to tires and detergents, to cruise ship operators and airlines – have reported a financial hit due to the war.
Airlines account for the bulk of the estimated costs related to the war, representing nearly $15 billion, with fuel prices having almost doubled.
As the strait blockade continues, more companies from other industries are sounding the alarm.