Iran War Costs Global Firms $25B

The U.S.-Israeli war with Iran has already cost companies around the world at least $25 billion, and the bill is still climbing, according to a Reuters analysis published on May 18, 2026.

A review of corporate statements since the start of the conflict by companies listed in the United States, Europe, and Asia offers a sobering picture of the financial fallout. Businesses are grappling with soaring energy prices, fractured supply chains, and trade routes severed by Iran's chokehold on the Strait of Hormuz.

Firms Cut Dividends, Raise Prices, Furlough Staff

At least 279 companies have cited the war as a trigger for defensive actions, including price increases and production cuts. Others have suspended dividends or buybacks, furloughed staff, added fuel surcharges, or sought emergency government assistance.

Airlines account for the biggest share of quantified war-related costs, representing nearly $15 billion, with jet fuel prices having nearly doubled. Japan's Toyota warned of a $4.3 billion hit, while Procter and Gamble estimated a $1 billion post-tax profit blow. German tiremaker Continental expects a hit of at least 100 million euros ($117 million) from the second quarter due to surging oil prices making raw materials more expensive.

Nearly 40 companies in the industrials, chemicals, and materials sectors have said they would raise prices due to their exposure to Middle Eastern petrochemical supply.

A Chokepoint That Cannot Be Substituted

The closure of the Strait of Hormuz, through which around 20% of the world's oil trade passes, and attacks on energy infrastructure in Iran and several Gulf Cooperation Council countries have led to a large disruption in global oil supplies. The strait, a central artery for global energy trade, has seen activity fall to a near halt, with ship transits dropping from around 130 per day in February to just 6 in March, a collapse of about 95%.

The International Energy Agency has characterised the closure as the "largest supply disruption in the history of the global oil market." Global merchandise trade is now expected to slow sharply, from about 4.7% growth in 2025 to between 1.5% and 2.5% in 2026, according to UN Trade and Development (UNCTAD). Analysts at the Thomson Reuters Institute advise companies to plan for the war to last into at least the second quarter, probably the third, and to model energy prices at between $120 and $150 per barrel.

As growth slows, pricing power will weaken and fixed costs will become harder to absorb, threatening profit margins in the second quarter and beyond. Sustained price hikes are likely to fuel inflation, hurting already-fragile consumer confidence.

Sources:
Iran war saddles global companies with $25 billion bill, Reuters via Geo.tv
Hormuz disruption deepens global economic strain, UNCTAD
The Long War: quarter-by-quarter costs of a continuing Iran war, Thomson Reuters Institute