US-Israeli war with Iran has already cost global business $25 billion, Reuters says
The US-Israeli war with Iran, which broke out on 28 February, has already caused global companies at least $25 billion in losses, and the financial toll is rapidly continuing to rise.
This is shown by the results of a large-scale analysis by Reuters, Censor.NET reports.
Oil shock and logistics blockade
The main trigger of the economic crisis was the Iran-organized blockade of the Strait of Hormuz. It cut off vital trade routes and pushed oil prices above $100 per barrel, up more than 50% compared with the pre-war period. As a result, the world has seen acute shortages and higher prices for chemical raw materials, fertilizers, aluminum, helium and polyethylene.
According to the survey, more than 279 international corporations have been forced to take emergency protective measures: raising final prices, cutting production volumes, freezing dividend payments, putting staff on forced leave and introducing fuel surcharges.
Who has suffered the most:
- Airlines: They have been hit hardest, losing nearly $15 billion due to a twofold increase in aviation fuel prices.
- Automotive industry and retail: Japanese giant Toyota has officially warned of possible losses of $4.3 billion, while P&G estimates its net profit losses at $1 billion. German tire manufacturer Continental expects at least $117 million in losses in the second quarter.
- Fast-food sector: McDonald’s Corporation has reported serious supply chain disruptions. According to the company’s CEO, Chris Kempczinski, the sharp rise in petrol prices is hitting low-income consumers’ wallets, reducing overall demand.
Businesses in the United Kingdom, Europe and Asia are suffering the most from the consequences of the Middle East war because of their critical dependence on energy supplies from the Middle East.
Experts say the conflict has become another heavy blow to the global market after the COVID-19 pandemic, Russia’s full-scale invasion of Ukraine and trade tariffs imposed by US President Donald Trump.
Against the backdrop of no prospects for a swift peace settlement, the International Energy Agency is already forecasting a reduction in global oil inventories and a deepening of the worst oil crisis in history.
