April 14: Impact of US-Iran War on International Economy, Financial Markets, and Livelihoods
The US-Iran conflict is causing significant impacts on the global economy, financial markets, and daily life. Rising oil and fuel costs are affecting industries from automotive and aviation to agriculture and luxury goods, with vulnerable nations facing increased hardship. The IEA predicts that the energy market in April will be more challenging.
📋 Article Processing Timeline
- 📰 Published: April 14, 2026 at 18:07
- 🔍 Collected: April 14, 2026 at 18:31 (24 min after Published)
- 🤖 AI Analyzed: April 19, 2026 at 15:18 (116h 46m after Collected)
US forces blockaded Iranian ports, causing renewed tension in the Strait of Hormuz, impacting international oil prices. To reduce commuting costs, some Estonians have begun trying to replace diesel with vegetable oil. Rising fertilizer and diesel prices are also causing distress for American farmers.
Here are the latest developments on the impact of the US-Iran war on the international economy, financial markets, and livelihoods:
Japanese bathroom manufacturer TOTO stops accepting orders for system bathrooms
Japanese bathroom manufacturer TOTO has informed wholesalers that it will stop accepting new orders for system bathrooms from the 13th. The reason is a shortage of organic solvents, and the supply of their raw material, naphtha, is affected by the blockade of the Strait of Hormuz.
"Nikkei" reported that TOTO has not yet decided when to resume accepting orders.
Qantas Airways warns: Fuel costs will soar
Australian airline Qantas Airways said on the 14th that soaring aviation fuel prices could increase the company's costs by up to AUD 800 million (approximately NT$18 billion) in the second half of this year.
In its market update, Qantas stated that the Middle East war has more than doubled aviation fuel prices, and prices remain "extremely volatile." Aviation fuel costs for the second half of 2026 are now projected to reach AUD 3.1 to 3.3 billion, up from the previous forecast of AUD 2.5 billion.
Germany implements energy tax cuts and allows corporate labor subsidies for relief measures
In response to continuously rising oil prices, the German government decided on short-term relief measures on the 13th, planning to reduce energy tax on gasoline and diesel by about 17 Euro cents per liter (approximately NT$6) for two months. It also allows companies to issue tax-free subsidies of up to 1,000 Euros (approximately NT$37,000) to alleviate the burden on the public, and these corporate expenditures will also be tax-exempt.
Some Estonians switch to cooking oil as fuel
With global diesel prices continuing to rise, some Estonians have begun trying to replace diesel with vegetable oil as vehicle fuel to reduce commuting costs.
Estonian Public Broadcasting (ERR) reported on the 13th that the price of cooking oil on the market in Estonia is currently less than 1 Euro per liter (approximately NT$37), while diesel prices have exceeded 2 Euros per liter (approximately NT$74). The price gap is significant, leading some Estonians to switch to vegetable oil instead of diesel.
The report indicated that this trend is mainly among owners of older diesel engines, whose simpler structure allows them to run on vegetable oil to some extent.
LVMH first quarter sales decrease by 6%, Middle East war impacts performance
Global luxury goods group LVMH Moët Hennessy Louis Vuitton (LVMH) saw its sales decrease by 6% in the first quarter of this year, mainly due to business setbacks in the region caused by the Middle East war.
Sales for the group, known for Louis Vuitton bags, Dior fashion, Moët & Chandon champagne, and Tiffany jewelry, were 19.1 billion Euros from January to March. Excluding factors such as exchange rate fluctuations and business changes, LVMH's first-quarter sales grew by 1%.
The company stated in a release: "Under the influence of the Middle East geopolitical and global economic environment, coupled with the severe and unmitigated regional conflicts, this has had a negative impact on the company, but the company still maintains strong momentum and demonstrates good resilience."
Fertilizer costs soar due to war, increasing pressure on US farmers
Following joint US-Israeli airstrikes on Iran, Tehran's blockade of the Strait of Hormuz, a key waterway for fertilizer and diesel transport. The simultaneous rise in prices of these commodities has dealt a double blow to many American farmers.
Andy Corriher, a 47-year-old farmer from North Carolina, told AFP: "This is the busiest fertilization season across the US every year, and we were hit hard at the worst possible time, as we were forced to purchase fertilizer at skyrocketing prices and interrupted supply."
News service Investigate Midwest reported that rising costs have impacted Donald Trump's core voter base. Trump blamed "fertilizer monopolists for price gouging" on the 11th and vowed: "American farmers, we will have your back!"
Brazil's crude oil importance grows
Brazil's crude oil is increasingly important in the global supply chain as China significantly increases its procurement. However, it faces dual challenges of geopolitical risks and soaring domestic fuel prices.
Brazilian military social media (sociedademilitar) analyzed that China's recent substantial increase in crude oil purchases from Brazil has led to a surge in Brazil's export volume to a historical second-highest level, reaching 2.5 million barrels per day in March, with nearly 70% destined for China. Brazil has thus become a key link in the global energy supply chain, but high dependence on a single buyer also exposes it to external risks.
Energy prices rise due to Middle East war, exacerbating hardships for financially fragile nations
Analysts worry that as the Middle East war causes energy prices to rise, a group of lower-income countries, such as Sri Lanka, Egypt, and Pakistan, which have already been hit hard by crises, may fall into distress again as the imported energy they rely on becomes more expensive.
Sri Lanka has now re-implemented fuel subsidies and is negotiating with the International Monetary Fund (IMF) for temporary relaxation of previous bailout conditions. Other countries are likely to attempt similar measures at the upcoming IMF and World Bank Spring Meetings in Washington next week.
IEA: Energy market in April will be more severe than in March
Fatih Birol, Executive Director of the International Energy Agency (IEA), stated on the 13th that due to the Middle East war, the international energy market and economic conditions in April may be more difficult than in March.
Birol pointed out that while regional shipments in March "were loaded before the crisis broke out," "no cargo was loaded in April." He said in an interview after attending the IMF meeting: "The longer the interruption, the more severe the problem will be." (Editor: Yang Chao-yen) 1150414
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Here are the latest developments on the impact of the US-Iran war on the international economy, financial markets, and livelihoods:
Japanese bathroom manufacturer TOTO stops accepting orders for system bathrooms
Japanese bathroom manufacturer TOTO has informed wholesalers that it will stop accepting new orders for system bathrooms from the 13th. The reason is a shortage of organic solvents, and the supply of their raw material, naphtha, is affected by the blockade of the Strait of Hormuz.
"Nikkei" reported that TOTO has not yet decided when to resume accepting orders.
Qantas Airways warns: Fuel costs will soar
Australian airline Qantas Airways said on the 14th that soaring aviation fuel prices could increase the company's costs by up to AUD 800 million (approximately NT$18 billion) in the second half of this year.
In its market update, Qantas stated that the Middle East war has more than doubled aviation fuel prices, and prices remain "extremely volatile." Aviation fuel costs for the second half of 2026 are now projected to reach AUD 3.1 to 3.3 billion, up from the previous forecast of AUD 2.5 billion.
Germany implements energy tax cuts and allows corporate labor subsidies for relief measures
In response to continuously rising oil prices, the German government decided on short-term relief measures on the 13th, planning to reduce energy tax on gasoline and diesel by about 17 Euro cents per liter (approximately NT$6) for two months. It also allows companies to issue tax-free subsidies of up to 1,000 Euros (approximately NT$37,000) to alleviate the burden on the public, and these corporate expenditures will also be tax-exempt.
Some Estonians switch to cooking oil as fuel
With global diesel prices continuing to rise, some Estonians have begun trying to replace diesel with vegetable oil as vehicle fuel to reduce commuting costs.
Estonian Public Broadcasting (ERR) reported on the 13th that the price of cooking oil on the market in Estonia is currently less than 1 Euro per liter (approximately NT$37), while diesel prices have exceeded 2 Euros per liter (approximately NT$74). The price gap is significant, leading some Estonians to switch to vegetable oil instead of diesel.
The report indicated that this trend is mainly among owners of older diesel engines, whose simpler structure allows them to run on vegetable oil to some extent.
LVMH first quarter sales decrease by 6%, Middle East war impacts performance
Global luxury goods group LVMH Moët Hennessy Louis Vuitton (LVMH) saw its sales decrease by 6% in the first quarter of this year, mainly due to business setbacks in the region caused by the Middle East war.
Sales for the group, known for Louis Vuitton bags, Dior fashion, Moët & Chandon champagne, and Tiffany jewelry, were 19.1 billion Euros from January to March. Excluding factors such as exchange rate fluctuations and business changes, LVMH's first-quarter sales grew by 1%.
The company stated in a release: "Under the influence of the Middle East geopolitical and global economic environment, coupled with the severe and unmitigated regional conflicts, this has had a negative impact on the company, but the company still maintains strong momentum and demonstrates good resilience."
Fertilizer costs soar due to war, increasing pressure on US farmers
Following joint US-Israeli airstrikes on Iran, Tehran's blockade of the Strait of Hormuz, a key waterway for fertilizer and diesel transport. The simultaneous rise in prices of these commodities has dealt a double blow to many American farmers.
Andy Corriher, a 47-year-old farmer from North Carolina, told AFP: "This is the busiest fertilization season across the US every year, and we were hit hard at the worst possible time, as we were forced to purchase fertilizer at skyrocketing prices and interrupted supply."
News service Investigate Midwest reported that rising costs have impacted Donald Trump's core voter base. Trump blamed "fertilizer monopolists for price gouging" on the 11th and vowed: "American farmers, we will have your back!"
Brazil's crude oil importance grows
Brazil's crude oil is increasingly important in the global supply chain as China significantly increases its procurement. However, it faces dual challenges of geopolitical risks and soaring domestic fuel prices.
Brazilian military social media (sociedademilitar) analyzed that China's recent substantial increase in crude oil purchases from Brazil has led to a surge in Brazil's export volume to a historical second-highest level, reaching 2.5 million barrels per day in March, with nearly 70% destined for China. Brazil has thus become a key link in the global energy supply chain, but high dependence on a single buyer also exposes it to external risks.
Energy prices rise due to Middle East war, exacerbating hardships for financially fragile nations
Analysts worry that as the Middle East war causes energy prices to rise, a group of lower-income countries, such as Sri Lanka, Egypt, and Pakistan, which have already been hit hard by crises, may fall into distress again as the imported energy they rely on becomes more expensive.
Sri Lanka has now re-implemented fuel subsidies and is negotiating with the International Monetary Fund (IMF) for temporary relaxation of previous bailout conditions. Other countries are likely to attempt similar measures at the upcoming IMF and World Bank Spring Meetings in Washington next week.
IEA: Energy market in April will be more severe than in March
Fatih Birol, Executive Director of the International Energy Agency (IEA), stated on the 13th that due to the Middle East war, the international energy market and economic conditions in April may be more difficult than in March.
Birol pointed out that while regional shipments in March "were loaded before the crisis broke out," "no cargo was loaded in April." He said in an interview after attending the IMF meeting: "The longer the interruption, the more severe the problem will be." (Editor: Yang Chao-yen) 1150414
Stand with facts, your every sponsorship is a force to protect the freedom of the press.
Download the CNA "One-Stop News" APP for the latest information.
Text, images, and audio on this website may not be reproduced, broadcast, transmitted, or utilized without authorization.