Quarterly reports released this week show the conflict between the U.S.-Israeli coalition and Iran has added a fresh layer of uncertainty for firms already wrestling with tariffs, elevated input costs and sluggish demand. Executives from paint manufacturers to airlines and miners described rising logistics and raw-material bills and weaker consumer confidence as they reassess near-term prospects.
Several companies said they were still adhering to previously stated full-year targets, but many warned that the situation was eroding visibility and would push up costs over coming quarters. A recurring complaint from management teams was transport disruption linked to the effective closure of the Strait of Hormuz - a strategic chokepoint that channels roughly a fifth of global oil and liquefied natural gas shipments.
AkzoNobel, maker of Dulux paints and a range of specialty coatings, told investors the conflict was starting to feed through into higher supply costs. CEO Greg Poux-Guillaume said, "Our raw material basket is going to go up by something like the high teens (percentage), given the disruption of the Strait of Hormuz," and added that the company expects the full effect to be felt over the next two quarters. AkzoNobel noted that its branded portfolio - which includes decorative paints and specialty coatings used on cargo ships and Formula 1 cars - gives it relatively greater scope to pass on higher input prices than peers with heavier exposure to commodity chemicals. The company's shares rose around 4% in morning trade.
Disrupted shipping lanes and rising transport and input expenses surfaced repeatedly in earnings calls and statements, hitting hardest those consumer goods businesses with global supply chains. Management teams and analysts are watching closely to determine whether companies can absorb the initial shock or will be forced to raise prices further or tighten future guidance if the conflict persists.
Much of the uncertainty rests on how long the hostilities last and whether the Strait of Hormuz reopens fully, which would alleviate supply constraints that have contributed to higher prices. U.S. stock futures rose and oil fell below $100 on Wednesday after U.S. President Donald Trump said he would indefinitely extend the Iran ceasefire, but optimism remained fragile with the strait largely closed and no sign of renewed U.S.-Iran talks.
Company-level disclosures paint a broad pattern of impact. A review of corporate statements since the start of the war shows 21 companies have withdrawn or cut financial guidance, 32 have signalled they will raise prices and 31 have warned of a direct financial hit from the conflict - a mix of effects that has emerged across sectors from consumer goods to aerospace.
Food and household groups described how the war and other disruptions were filtering through their supply chains. French food group Danone reported first-quarter sales that beat expectations but were a notable deceleration from late last year, citing both the conflict and a baby-formula recall in Europe. The company said shipments of baby formula imported from Europe that pass through the Middle East were affected. Danone nonetheless left its full-year guidance unchanged, arguing its health-focused product mix provided resilience in a volatile environment.
Reckitt, maker of Dettol and other hygiene products, missed like-for-like net revenue expectations for its core business in the quarter and warned of narrower first-half margins, attributing pressure to high oil prices and weaker demand for cold and flu products. Reckitt's shares fell about 5% to levels not seen since October 2024.
Travel and tourism operators reported significant stress as jet fuel costs climbed and geopolitical unease dented consumer demand. German tourism group TUI cut its full-year underlying operating profit (EBIT) forecast and suspended revenue guidance, saying the ongoing conflict and uncertainty over its duration were limiting near-term visibility and prompting consumer caution. U.S. carrier United Airlines also signalled softer demand, forecasting second-quarter and full-year profits below Wall Street estimates.
Resource companies described similar pressures. Diversified miner South32 trimmed its full-year outlook for its Australia Manganese unit after heavy rainfall and Tropical Cyclone Narelle disrupted operations, and warned that tensions in the Middle East were adding to cost pressures through elevated freight rates and raw-material prices. South32 said it had implemented measures across operations to mitigate possible supply chain impacts from the conflict and that, while it was not currently experiencing diesel shortages, it was monitoring conditions closely.
Executives at firms that began the year with healthy order books and solid pricing power also cited the conflict as a limiting factor on their near-term confidence. GE Aerospace's CEO Larry Culp said the company would have raised its forecast were it not for the present uncertainty. GE Aerospace also said its outlook assumes Brent crude will stay elevated through the third quarter before easing toward year-end and accounts for near-term constraints on fuel availability.
Industrial conglomerate 3M warned that higher oil prices could push up its product pricing by roughly 50 basis points, signalling the potential for cost pass-through that could ripple across customer industries. These examples illustrate how the effects of the conflict - on energy, transport and raw materials - are filtering through diverse parts of the corporate sector.
As companies issue results and commentary in the weeks ahead, investors and policymakers will be watching whether price increases and cost-control measures are enough to protect margins, or whether extended disruption to energy and shipping routes leads to broader revisions of corporate forecasts.