Quick overview

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With energy prices near record highs, global supply chains under pressure, and key trade routes disrupted, the conflict in the Middle East has already cost companies worldwide at least $25 billion since the war began in late February — a financial hit comparable to the impact many firms faced last year from President Donald Trump’s tariff policies.

The estimate comes from a review of corporate filings and earnings reports from publicly traded companies across the United States, Europe, and Asia. In total, at least 279 companies have cited the war as a reason for implementing defensive measures aimed at limiting financial damage.

Airlines account for the largest share of the losses, totaling nearly $15 billion, as jet fuel prices have almost doubled amid the conflict.

Companies across multiple sectors have responded with price increases, production cuts, and cost-saving measures. Some have suspended dividends and share buyback programs, while others have temporarily laid off workers, added fuel surcharges, or sought emergency government assistance.

For comparison, hundreds of corporations reported more than $35 billion in costs linked to Trump’s 2025 tariffs last October.

Corporate leaders compare the shock to 2008

As the conflict drags on, businesses are increasingly lowering expectations for the remainder of the year, with few signs of a near-term diplomatic resolution.

Several executives have warned that the current industrial slowdown resembles the conditions seen during the 2008 global financial crisis — and in some sectors may even be worse than previous recessionary periods.

Rising costs are also feeding inflationary pressures, eroding consumer purchasing power and changing spending habits worldwide. Companies report that consumers are increasingly delaying purchases and opting to repair products instead of replacing them.

Energy inflation hits consumer demand

McDonald’s recently warned that it expects persistent long-term cost inflation due to ongoing supply chain disruptions tied to the conflict.

CEO Chris Kempczinski said higher fuel prices are already hurting lower-income consumers, adding that rising gasoline costs have become “the main issue” affecting customer demand.

The combination of elevated energy prices, weaker consumption, and supply chain instability is now emerging as one of the largest challenges facing the global corporate sector in 2026.