Iran Conflict Costs Global Firms $25B as Oil Tops $100

The US-Israeli conflict with Iran has cost global corporations at least $25 billion, with oil prices remaining above $100 per barrel and the Strait of Hormuz disrupted.

Airlines are absorbing roughly $15 billion of the total. Jet fuel prices have nearly doubled, and carriers are struggling to absorb the costs. Toyota estimates its financial impact at $4.3 billion. Procter & Gamble expects a $1 billion hit to post-tax profits. McDonald's is warning of rising costs. Newell Brands says every $5 increase in oil prices adds $5 million to its cost structure.

The Strait of Hormuz blockade, through which a fifth of the world's oil passes daily, is the core disruption. Oil prices are more than 50% above pre-conflict levels. Cargo ships are burning more fuel on rerouted paths, insurance costs are rising, and manufacturers are holding larger inventories. FactSet reports that Q2 net profit margin forecasts for S&P 500 sectors are being revised downward.