War with Iran costs global companies 25 billion dollars

Monday 18 May 2026 - 09:22

By: Dakir Madiha

War with Iran costs global companies 25 billion dollars

Global companies have incurred losses of at least 25 billion dollars due to the war between the United States and Israel and Iran. The conflict has forced widespread defensive action across corporate balance sheets, affecting pricing strategies, production levels, dividend policies, and emergency funding requests from governments. At least 279 companies have cited direct financial pressure linked to disruptions caused by the war and its impact on global energy flows.

The disruption of the Strait of Hormuz has played a central role in the shock to global trade. Around 20 percent of the world’s oil and gas passes through the waterway, making it one of the most critical energy corridors. Reduced stability in the region has triggered supply uncertainty that has spread across multiple industries, from transportation to heavy manufacturing.

The aviation sector has absorbed the heaviest share of the economic burden. Jet fuel prices have approximately doubled since the start of the conflict, forcing airlines across the United States, Europe, Asia, and Australia to reduce capacity. Around 9.3 million seats have been removed from summer schedules. One major low cost carrier has shut down operations entirely, citing fuel costs alongside existing financial strain. Airfare prices have risen sharply, with domestic flights increasing by roughly 24 percent and international routes by about 16 percent. Some airlines have also suspended routes considered no longer financially viable.

Industrial and chemical producers are facing rising input costs linked to disrupted petrochemical supply chains. Shortages of materials such as naphtha and sulfuric acid have forced production cuts in parts of Asia. Mining companies, including Gold Fields, have reported higher fuel and explosives costs. One industrial group has indicated raw material expenses could rise by nearly 20 percent over the next two quarters due to continued pressure from the energy market.

Financial markets have shown resilience despite the disruption. Major equity indices have recovered earlier losses and reached record levels in recent months, even as analysts warn that corporate earnings have not yet fully reflected the impact of the conflict. Government defense spending related to the war has been estimated at 29 billion dollars. International development experts have also warned that more than 30 million people could face a return to poverty if energy and fertilizer supply chains remain unstable. Some market observers note that even if a diplomatic resolution were reached immediately, economic relief would take weeks or months to materialize.