"Global Corporations Face at Least $25 Billion Burden as Iran War Shockwaves Spread"

Oil Price Surges Amid Hormuz Blockade Deal Direct Blow

Rising Costs Spread Across Industries Beyond Airlines

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An analysis has found that the global corporate sector has already been saddled with at least $25 billion (approximately KRW 3.75 trillion) in costs as a result of the U.S. and Israeli war against Iran.

According to Yonhap News Agency on the 18th (local time), a Reuters analysis of disclosures and earnings reports from listed companies in the U.S., Europe, and Asia found that at least 279 companies have taken action to mitigate the financial impact of the war.

Companies are responding in various ways, including price increases, production cutbacks, suspension of dividends or share buybacks, implementation of unpaid leave for employees, and requests for government support.

Global corporations are currently facing a range of challenges stemming from this war, such as surging energy prices, supply chain breakdowns, and the blockade of the Strait of Hormuz disrupting trade routes.

Reuters assessed that the Iran war has become another major risk factor for global companies, following the COVID-19 pandemic and Russia's invasion of Ukraine.

In particular, the blockade of the Strait of Hormuz has pushed international oil prices to over $100 per barrel, directly increasing costs for companies.

With jet fuel prices nearly doubling, the airline industry's additional war-related expenses have been estimated at approximately $15 billion (about KRW 2.2 trillion).

Other industries are also sounding the alarm.

Toyota of Japan expects to suffer a blow worth $4.3 billion (about KRW 6.4 trillion) due to the war, while Procter & Gamble, the largest consumer goods company, forecasts a post-tax profit decline of $1 billion (about KRW 1.5 trillion).

McDonald's stated that ongoing supply chain disruptions would intensify long-term cost inflation pressures.

Continental, the German tire manufacturer, expects a loss of at least 100 million euros (about KRW 174.4 billion) in the second quarter, as surging oil prices have led to increased raw material costs.

Mark Bitzer, CEO of Whirlpool, a home appliance manufacturer, diagnosed, "This level of industry downturn is similar to the time of the global financial crisis and more severe than during other downturns."

Market observers predict that as the shockwaves of the Iran war—caused by the blockade of Hormuz and supply chain breakdowns—begin to be fully reflected in second-quarter earnings this year, corporate profit margin pressures will intensify.

This content was produced with the assistance of AI translation services.