Anabelle Colaco
20 May 2026

LONDON/NEW YORK CITY: The war involving the United States, Israel and Iran has already cost companies around the world at least US$25 billion, with the financial impact expected to grow as higher energy prices and supply disruptions spread through the global economy.

A Reuters review of corporate disclosures in the United States, Europe, and Asia found that at least 279 companies have cited the conflict as a reason for taking defensive measures such as raising prices, cutting production, furloughing workers, suspending dividends and share buybacks, or seeking government support.

The conflict has severely disrupted shipping through the Strait of Hormuz, a vital route through which roughly one-fifth of the world's traded oil and large volumes of natural gas typically pass. The closure has pushed oil prices above $100 a barrel, more than 50 percent higher than before the war began.

The spike in energy costs has driven up prices for shipping and key industrial inputs, including fertilizers, helium, aluminum, and polyethylene. "This level of industry decline is similar to what we have observed during the global financial crisis and even higher than during other recessionary periods," said Marc Bitzer, Chief Executive Officer of Whirlpool Corporation.

Whirlpool recently cut its full-year forecast in half and suspended its dividend. "Consumers are holding back on replacing products and are rather repairing them," Bitzer added.

Airlines account for the largest share of quantified losses, representing nearly $15 billion in additional fuel costs as jet fuel prices have almost doubled.

Automakers and consumer goods companies are also reporting significant hits. Toyota Motor Corporation said the war could reduce profit by $4.3 billion, while Procter & Gamble estimated a $1 billion reduction in post-tax earnings.

McDonald's said supply-chain disruptions and higher fuel costs are likely to keep inflation elevated. "The elevated gas prices are the core issue we're seeing right now," said Chris Kempczinski, Chief Executive Officer of McDonald's Corporation.

Nearly 40 companies in the industrial, chemical, and materials sectors said they expect to raise prices due to their exposure to Middle Eastern petrochemical supplies.

Roland Welzbacher, an executive at Continental AG, said the impact would become more pronounced as the year progresses. "It probably hits us late in Q2, and then it will come in full-blown in the second half," Welzbacher said.

Analysts say much of the damage has yet to appear in corporate earnings. "The true earnings hit has not yet materialized in most companies' results," said Rami Sarafa, Chief Executive Officer of Cordoba Advisory Partners.

Second-quarter profit margin forecasts have already been cut for industrial, consumer discretionary, and consumer staples companies in the United States, while analysts in Europe and Japan have lowered earnings expectations as well.

With no clear end to the conflict and oil prices remaining elevated, companies worldwide are bracing for further cost increases, weaker consumer demand, and mounting pressure on profit margins.