By Reuters Analysis
May 18 - The U.S.-Israeli war with Iran has already cost companies globally at least $25 billion, with the price tag climbing daily.
A review of corporate disclosures from the U.S., Europe, and Asia reveals how businesses face soaring energy prices, fractured supply chains, and the closure of the Strait of Hormuz-the world's most critical oil chokepoint. At least 279 companies have taken defensive steps, including price increases, production cuts, suspended dividends, and emergency government aid.
Whirlpool CEO Marc Bitzer called the decline "similar to the global financial crisis," after slashing its full-year forecast by half. Toyota warned of a $4.3 billion hit; Procter & Gamble estimated a $1 billion profit blow. Airlines alone account for nearly $15 billion in losses as jet fuel prices nearly double.
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With oil above $100 per barrel, fixed costs become harder to absorb. Sustained price hikes risk fueling inflation and further weakening consumer confidence. McDonald's CEO Chris Kempczinski pointed to "elevated gas prices" as the core concern for lower-income demand.
The pain is not yet fully reflected in earnings. Margins are being cut for industrials, consumer discretionary, and staples companies. European and Japanese equity strategists warn of negative revisions ahead. As Cordoba Advisory CEO Rami Sarafa put it, "The true earnings hit has not yet materialized."