finance

HSBC warns Iran conflict is denting global economic confidence

Bank executives and business leaders told an HSBC summit the Iran war is already eroding confidence and driving higher energy and commodity costs that threaten growth.

Apr 14th 2026 · United Kingdom

Insights

  • HSBC chief Georges Elhedery said the Middle East conflict is starting to weigh on general business confidence.
  • Higher energy and commodity costs cited as channels for wider global impact, including oil, refined products, fertilisers and metals.
  • Brent crude briefly rose above $100 a barrel before falling to about $98.5 a barrel amid a US blockade on Iranian ports.
  • HSBC has a 31% stake in Saudi Awwal Bank and the Middle East accounts for roughly 4% of its pre-tax profit.
  • Some Middle East investors are exploring relocation while the bank has seen only limited capital outflows so far.
  • Companies from textiles to airlines report cost and supply disruptions, with polyester costs up 10 to 15% and jet fuel more than double prewar levels.
  • UK chancellor Rachel Reeves called for coordinated international economic action at IMF and World Bank meetings.

Sources