Iran war saddles global companies with $25 billion bill and the cost is still climbing

The US-Israeli war with Iran has already cost companies around the world at least $25 billion, according to a Reuters analysis of corporate statements since the conflict began.

At least 279 companies listed in the United States, Europe and Asia have cited the Iran war as a trigger for defensive actions including price increases, production cuts and suspended dividends. The bill continues to climb.

How is the Iran war affecting global companies and the economy?

The Iran war has driven oil above $100 a barrel, fractured supply chains, and severed trade routes through the Strait of Hormuz.

At least 279 companies have responded with price hikes, production cuts, furloughs, fuel surcharges, or emergency government assistance. Airlines alone account for nearly $15 billion of the total, as jet fuel costs have nearly doubled.

Which companies have been hardest hit by Iran war costs?

The list spans industries and continents. Toyota warned of a $4.3 billion financial hit, while Procter and Gamble estimated a $1 billion post-tax profit blow. Whirlpool CEO Marc Bitzer slashed the company's full-year forecast in half and suspended its dividend, comparing the decline to the global financial crisis.

A majority of affected companies are based in the UK and Europe, where energy costs were already elevated before the war. Almost a third are from Asia, reflecting those regions' deep reliance on Middle Eastern oil. One in five companies reviewed, spanning cosmetics, tyres, detergent, cruise operators and airlines, have flagged a direct financial impact.

How does the Iran war affect oil prices and supply chains?

Iran's blockade of the Strait of Hormuz, the world's most critical energy chokepoint, has pushed oil prices more than 50% higher than before the war. The closure has driven up shipping costs, squeezed raw material supplies and disrupted the flow of goods including fertilizers, helium, aluminium and polyethylene. Nearly 40 companies in industrials, chemicals and materials have said they will raise prices due to their exposure to Middle Eastern petrochemical supply.

Newell Brands CFO Mark Erceg said every $5 rise in per-barrel oil prices adds approximately $5 million in costs.

German tyremaker Continental expects a hit of at least 100 million euros from the second quarter, with the full impact expected to land in the second half of the year. McDonald's CEO Chris Kempczinski said "elevated gas prices are the core issue we're seeing right now" as fuel costs weigh on lower-income consumer demand.

When will the full earnings hit from the Iran war materialize?

Corporate profits held up through the first quarter, which is part of why major indexes including the S&P 500 managed to reach new highs despite rising energy costs. Since March 31, second-quarter net profit margin forecasts have been cut by 0.38 percentage points for S&P 500 industrials and 0.14 points for consumer discretionary companies, according to FactSet data.

In Japan, analysts have halved estimates for second-quarter earnings growth to 11.8% since the end of March.

Goldman Sachs analysts warned that European companies will face margin pressure from the second quarter as hedging protection expires and cost pass-through becomes harder. Consumer-facing sectors including autos, telecoms and household products are seeing negative earnings revisions of more than 5% for the next 12 months, according to UBS head of European equity strategy Gerry Fowler.

"The true earnings hit has not yet materialized in most companies' results," said Rami Sarafa, CEO of Cordoba Advisory Partners.

To put the scale in context, hundreds of companies flagged more than $35 billion in costs from Trump's 2025 tariffs by October last year. The Iran war costs, still accumulating after roughly three months of conflict, are approaching that figure with little sign of a deal to end the fighting.