Since the beginning of the US-Israeli military conflict with Iran, which erupted on February 28, global companies have already lost at least $25 billion, and this amount continues to rise. Disruptions in global supply chains and rising oil prices have caused financial losses for hundreds of businesses in various countries.
This is reported by Finway
Blockade of the Strait of Hormuz and Its Impact on Markets
The Iranian blockade of the Strait of Hormuz has led to a sharp spike in oil prices — over $100 per barrel, which is 50% higher than pre-war levels. This has dealt a significant blow to global raw material transportation, particularly fertilizers, helium, aluminum, polyethylene, and other essential goods. The substantial increase in shipping costs and logistical difficulties have forced companies worldwide to resort to emergency cost-saving measures.
Analysis of the situation has shown that over 279 companies have been forced to raise prices, cut production, suspend dividend payments or stock buybacks, send employees on leave, implement fuel surcharges, or seek assistance from governments. The largest losses have been incurred by companies from the UK and Europe, where energy resources were already expensive, as well as businesses from Asia that heavily rely on oil and fuel resources from the Middle East.
Losses for Key Industries and Company Reactions
The aviation industry has become the most vulnerable: its total losses have reached around $15 billion, as jet fuel prices have doubled. Japanese Toyota has already warned of losses of $4.3 billion, while P&G has estimated a post-tax profit drop of $1 billion. The well-known Malaysian condom manufacturer Karex has also reported financial losses.
In the first half of May, McDonald’s announced that it expects significant cost increases due to supply chain disruptions. The company’s CEO, Chris Kempczinski, emphasized:
“Rising gasoline prices are the main issue we are facing right now.”
Nearly 40 industrial, chemical, and raw material companies have announced price increases due to their dependence on petrochemical supplies from the Middle East. According to Newell Brands’ CFO Mark Erceg, every $5 increase in oil prices adds approximately $5 million to the company’s costs.
The German tire conglomerate Continental expects losses of at least 100 million euros ($117 million) in the second quarter due to rising raw material costs. For comparison, last October, companies had already reported over $35 billion in costs due to tariffs imposed by US President Donald Trump in 2025.
The war in the Middle East has become yet another global shock for businesses following the COVID-19 pandemic and Russia’s full-scale invasion of Ukraine. Many companies are forced to revise their forecasts for the future, as agreements to end the war with Iran are not expected anytime soon.
The International Energy Agency also predicts that global oil reserves will decline this year due to the conflict in the Middle East, as exports are significantly hampered and prices are rising at record rates.