Global companies lost $25 billion from the war - Most are based in the UK and Europe
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. Businesses are grappling with rising energy prices, disrupted supply chains and trade routes cut off by Iran's blockade 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 cutting production, the analysis shows. Others have suspended dividends, laid off staff, added fuel surcharges or sought emergency government assistance.
The latest turmoil in a series of global events worrying business in the wake of the COVID-19 pandemic and Russia's invasion of Ukraine is tempering expectations for the rest of the year, with little sense that a deal to end the conflict will be imminent.
As growth slows, pricing power will weaken and fixed costs will become harder to absorb, analysts say, threatening profit margins in the second quarter and beyond. Sustained price increases could fuel inflation, undermining already fragile consumer confidence.
A fifth of the companies surveyed - which produce everything from cosmetics to tyres and detergents, to cruise ship operators and airlines - have reported a financial hit because of the war. Most are based in the UK and Europe, where energy costs were already high, while almost a third were in Asia, reflecting these regions' deep dependence on Middle Eastern oil and fuel products.
Airlines have reported $15 billion in additional fuel costs from the Iran war, three times more than automakers and consumer goods firms combined. The total corporate cost is over $25 billion.
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