Iran War Has Cost Global Companies at Least $25 Billion, Reuters Analysis Finds
According to a Reuters analysis, the (hypothetical) war between the US/Israel and Iran has cost global companies at least $25 billion. The losses stem from soaring energy prices, supply chain disruptions, and trade interruptions caused by Iran's blockade of the Strait of Hormuz. The airline industry is the hardest hit, and major corporations like Toyota and Procter & Gamble have also warned of significant impacts.
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- 📰 Published: May 18, 2026 at 18:25
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(Central News Agency, New York, 18th, Comprehensive Foreign Report) The war between the United States and Israel against Iran has cost companies worldwide at least $25 billion, and that number is still climbing, according to a Reuters analysis.
A review of statements from publicly listed companies in the U.S., Europe, and Asia since the conflict began reveals the negative consequences of the crisis, Reuters reported. Industries are grappling with soaring energy prices, fractured supply chains, and trade disruptions caused by Iran's blockade of the Strait of Hormuz.
The analysis shows that at least 279 companies have taken measures such as raising prices or cutting production to mitigate the financial impact. Other companies have suspended dividends or stock buybacks, forced employees to take unpaid leave, added fuel surcharges, or sought emergency government bailouts.
Following the COVID-19 pandemic and Russia's invasion of Ukraine, this war has become the latest turmoil to shock global business activity, dimming market outlooks for the second half of the year. There are currently few signs of an impending peace deal between the U.S. and Iran.
After U.S. appliance maker Whirlpool halved its full-year profit forecast and suspended its dividend, CEO Marc Bitzer told analysts: "This level of industry decline is similar to what we observed during the global financial crisis, and even more severe than in other recessionary periods."
Analysts say that as economic growth slows, companies' pricing power will weaken, and fixed costs will be harder to absorb, threatening profit margins in the second quarter and beyond. Persistently rising prices could also push up inflation, further damaging already fragile consumer confidence.
As the conflict enters its third month, consumer goods giant Procter & Gamble, Malaysian condom maker Karex, and Japan's Toyota Motor Corp. have all warned of mounting losses.
Iran's blockade of the Strait of Hormuz, a global energy chokepoint, has caused international oil prices to soar above $100 a barrel, a more than 50% increase compared to pre-war levels.
The closure of the strait has driven up shipping costs, squeezed raw material supplies, and cut off trade routes crucial for the flow of goods. Supplies of fertilizers, helium, aluminum, polyethylene, and other key raw materials have also been impacted.
According to the Reuters survey, one-fifth of companies reported financial losses due to the war, spanning industries from cosmetics, tires, and laundry detergent production to cruise and airline services.
Most of the affected companies are located in the UK and Europe, which were already bearing higher energy costs, with nearly a third from Asia, reflecting the high dependency of these regions on Middle Eastern oil and fuel products.
In contrast, as of last October, hundreds of companies had indicated that tariffs imposed by U.S. President Donald Trump last year had increased corporate costs by over $35 billion.
Quantifying the war-related costs, airlines are the biggest victims, with costs soaring by nearly $15 billion as jet fuel prices have almost doubled. Toyota Motor also projects a $4.3 billion loss, while Procter & Gamble estimates a $1 billion reduction in after-tax profit.
Fast-food giant McDonald's warned earlier this month that it expects long-term cost inflation to worsen amid ongoing supply chain disruptions.
McDonald's CEO Chris Kempczinski said soaring fuel prices are eroding demand from low-income consumers, stating, "The biggest issue right now is high gas prices."
Nearly 40 industrial, chemical, and materials companies have said they will be forced to raise product prices due to their reliance on petrochemical supplies from the Middle East.
Mark Erceg, CFO of global consumer goods giant Newell Brands, noted earlier this month that for every $5 increase in the per-barrel price of international oil, the company's costs increase by about $5 million.
German auto tire and parts manufacturer Continental also expects its costs to increase by at least 100 million euros starting in the second quarter due to rising raw material prices driven by soaring oil prices. (Compiled by: Hung Pei-ying) 1150518
A review of statements from publicly listed companies in the U.S., Europe, and Asia since the conflict began reveals the negative consequences of the crisis, Reuters reported. Industries are grappling with soaring energy prices, fractured supply chains, and trade disruptions caused by Iran's blockade of the Strait of Hormuz.
The analysis shows that at least 279 companies have taken measures such as raising prices or cutting production to mitigate the financial impact. Other companies have suspended dividends or stock buybacks, forced employees to take unpaid leave, added fuel surcharges, or sought emergency government bailouts.
Following the COVID-19 pandemic and Russia's invasion of Ukraine, this war has become the latest turmoil to shock global business activity, dimming market outlooks for the second half of the year. There are currently few signs of an impending peace deal between the U.S. and Iran.
After U.S. appliance maker Whirlpool halved its full-year profit forecast and suspended its dividend, CEO Marc Bitzer told analysts: "This level of industry decline is similar to what we observed during the global financial crisis, and even more severe than in other recessionary periods."
Analysts say that as economic growth slows, companies' pricing power will weaken, and fixed costs will be harder to absorb, threatening profit margins in the second quarter and beyond. Persistently rising prices could also push up inflation, further damaging already fragile consumer confidence.
As the conflict enters its third month, consumer goods giant Procter & Gamble, Malaysian condom maker Karex, and Japan's Toyota Motor Corp. have all warned of mounting losses.
Iran's blockade of the Strait of Hormuz, a global energy chokepoint, has caused international oil prices to soar above $100 a barrel, a more than 50% increase compared to pre-war levels.
The closure of the strait has driven up shipping costs, squeezed raw material supplies, and cut off trade routes crucial for the flow of goods. Supplies of fertilizers, helium, aluminum, polyethylene, and other key raw materials have also been impacted.
According to the Reuters survey, one-fifth of companies reported financial losses due to the war, spanning industries from cosmetics, tires, and laundry detergent production to cruise and airline services.
Most of the affected companies are located in the UK and Europe, which were already bearing higher energy costs, with nearly a third from Asia, reflecting the high dependency of these regions on Middle Eastern oil and fuel products.
In contrast, as of last October, hundreds of companies had indicated that tariffs imposed by U.S. President Donald Trump last year had increased corporate costs by over $35 billion.
Quantifying the war-related costs, airlines are the biggest victims, with costs soaring by nearly $15 billion as jet fuel prices have almost doubled. Toyota Motor also projects a $4.3 billion loss, while Procter & Gamble estimates a $1 billion reduction in after-tax profit.
Fast-food giant McDonald's warned earlier this month that it expects long-term cost inflation to worsen amid ongoing supply chain disruptions.
McDonald's CEO Chris Kempczinski said soaring fuel prices are eroding demand from low-income consumers, stating, "The biggest issue right now is high gas prices."
Nearly 40 industrial, chemical, and materials companies have said they will be forced to raise product prices due to their reliance on petrochemical supplies from the Middle East.
Mark Erceg, CFO of global consumer goods giant Newell Brands, noted earlier this month that for every $5 increase in the per-barrel price of international oil, the company's costs increase by about $5 million.
German auto tire and parts manufacturer Continental also expects its costs to increase by at least 100 million euros starting in the second quarter due to rising raw material prices driven by soaring oil prices. (Compiled by: Hung Pei-ying) 1150518