Iran Strait of Hormuz Blockade Costs Businesses $25 Billion: Reuters
Reuters found the war-driven blockade has lifted oil above $100 a barrel and pushed at least 279 companies into defensive moves.
- Reuters reported today that the oil and gas crunch caused by the war between the United States, Israel, and Iran has cost global businesses $25 billion, with the financial toll expected to climb higher.
- Iran's blockade of the Strait of Hormuz pushed oil prices above $100 a barrel, with Brent crude topping $111 and West Texas Intermediate trading over $107 earlier today. The disruption has severed critical trade routes.
- Airlines account for nearly $15 billion in quantified costs, while Toyota warned of a $4.3 billion hit and Procter estimated a $1 billion profit blow. Continental expects at least $117 million in losses.
- At least 279 companies have cited the war as a trigger for defensive actions including price hikes and production cuts. "Consumers are holding back on replacing products and rather repairing them," Whirlpool CEO Marc Bitzer said.
- European STOXX 600-listed companies will face margin pressure beginning in the second quarter as it becomes harder to pass through extra costs. Gerry Fowler, UBS head of European equity strategy, noted negative revisions exceeding 5% for consumer-facing sectors over the next 12 months.
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43 Articles
Companies are asking for urgent help from the state
Global Recession Nears as Countries Hoard Oil Reserves.
The ongoing war between the United States and Iran, specifically the blockade of the Strait of Hormuz, could plunge the world economy into recession due to rising energy costs.PULSE POINTS WHAT HAPPENED: The global economy could slide into recession within weeks due to rising oil prices caused by the war between the United States and Iran, according to economic experts. DETAIL: Following the outbreak of the Iran war in late February this year, t…
The study analyzed about 280 companies and notes that the main difficulties focus on energy costs and the breakdown of the supply chains of goods.
The US-Israeli war with Iran has caused damage to energy infrastructure in the range of $34 to $58 billion, or approximately 720 billion to 1.2 trillion crowns. More than 80 facilities have been affected since the beginning of the conflict, with a third of them suffering serious damage.
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