Iran Conflict Has Cost Global Companies at Least $25 Billion: Reuters Analysis

The U.S.-Israeli conflict involving Iran has already cost companies around the world at least $25 billion, and losses continue to mount, according to a Reuters analysis by Medha Singh, Deborah Mary Sophia and Bernadette Hogg.

Shipping containers sit at a global port as companies face supply-chain disruptions linked to the Iran conflict.

A review of corporate disclosures by listed companies in the United States, Europe and Asia showed businesses grappling with soaring energy prices, disrupted supply chains and trade routes affected by tensions surrounding the Strait of Hormuz.

At least 279 companies cited the conflict as a reason for defensive measures aimed at limiting financial damage, including price increases, production cuts, suspended dividends, furloughs, fuel surcharges and emergency government assistance.

The economic disruption — following earlier shocks from the COVID-19 pandemic and Russia’s invasion of Ukraine — is weighing on corporate outlooks, with few signs of an imminent resolution to the conflict.

“This level of industry decline is similar to what we observed during the global financial crisis and even higher than during other recessionary periods,” said Marc Bitzer, CEO of Whirlpool.

As economic growth slows, analysts warn that pricing power may weaken while fixed costs become harder to absorb, threatening profit margins.

“Consumers are holding back on replacing products and rather repairing them,” Bitzer said.