Iran Blockade Costs Companies $25 Billion as Oil Tops $100
The blockade of the Strait of Hormuz has pushed oil above $100 a barrel, with at least 279 companies citing defensive actions including price hikes and production cuts. Airlines alone face nearly $15 billion in costs.
May 18th 2026 · World
The US-Israeli war with Iran has cost companies worldwide at least $25 billion so far, with the bill continuing to climb as Iran's blockade of the Strait of Hormuz disrupts global trade and energy markets, according to a Reuters analysis. At least 279 companies have cited the conflict as triggering defensive actions, including price increases, production cuts, suspended dividends, and workforce adjustments. The blockade has pushed oil prices above $100 a barrel, more than 50 percent higher than before the war, while shipping costs have surged and supplies of fertilisers, helium, aluminium, polyethylene, and other key raw materials have been squeezed. The conflict is the latest in a series of global economic disruptions for businesses following the COVID-19 pandemic and Russia's invasion of Ukraine, with corporate leaders warning that the industry decline mirrors levels seen during the global financial crisis. Whirlpool slashed its full-year forecast in half and suspended its dividend, with CEO Marc Bitzer noting consumers are repairing products instead of replacing them. Airlines account for the largest share of quantified costs at nearly $15 billion due to near-doubled jet fuel prices, while Toyota has warned of a $4.3 billion hit and Procter & Gamble estimates a $1 billion post-tax profit blow. Despite these mounting pressures, corporate profits remained buoyant through the first quarter, helping major indexes like the S&P 500 scale new highs even as energy costs bite and inflation concerns mount. However, analysts say the true earnings impact has not yet fully materialized in company results. Since March 31, second-quarter net profit margin forecasts for S&P 500 industrials have been cut by 0.38 percentage points, with European STOXX 600-listed companies expected to face margin pressure as hedging protections expire. German tyremaker Continental expects a minimum 100 million euro hit beginning late in the second quarter, while Japan's earnings growth estimates have been halved to 11.8 percent, with little indication that a resolution to the conflict is imminent.