The economic impact of the Iran war is beginning to show across global industries, with top executives citing weaker consumer demand, delayed corporate spending, supply chain concerns and softer travel flows during first-quarter earnings calls.
According to a report by Business Insider, more than six weeks after the conflict began, companies ranging from luxury groups and advertising networks to banks and chipmakers are starting to outline how the crisis is affecting operations.
While sectors such as investment banking remain relatively resilient, consumer-facing businesses with strong Middle East exposure appear to be under greater pressure.
Goldman Sachs CEO David Solomon said on the bank’s April 13 earnings call cited by Business Insider that “the environment for investment banking activity continues to be incredibly robust, particularly M&A activity.”
Solomon said corporate leaders were closely watching geopolitical developments but remained focused on artificial intelligence-led opportunities.
“They are focused on that, and that candidly trumps some of the geopolitical risk,” he added.
Business Insider reported that French advertising giant Publicis Groupe said some clients had delayed investment decisions amid uncertainty over the conflict.
Chief executive Arthur Sadoun said certain companies had postponed “large transformation capex projects,” though he noted advertisers were continuing to protect marketing budgets.
“They know that if they cut marketing spend, they will lose market share,” Sadoun said, as quoted by Business Insider. “That will be very expensive and very difficult to win back.”
Publicis said its Middle East and Africa business posted a 5.1% decline in organic revenue during the quarter, with the UAE and Israel among the most affected markets.
Luxury goods groups also pointed to slowing demand.
According to Business Insider, LVMH said its first-quarter performance was negatively affected by the conflict, with chief financial officer Cécile Cabanis stating that “demand is very much down” in the Middle East, particularly due to lower footfall in malls.
She added that Sephora had performed better than other divisions because of its presence in Saudi Arabia.
“What we have not seen yet is repatriation. And what we know is that the wealth has not evaporated,” Cabanis said.
Gucci owner Kering said geopolitical tensions weighed on traffic and performance in the region, reporting an 11% decline in Middle East retail revenue in the first quarter.
In the technology sector, Business Insider reported that semiconductor giant TSMC warned the war could increase prices of chemicals and gases used in chipmaking, though the company said it had sufficient hydrogen and helium reserves to withstand short-term shortages.
BlackRock CEO Larry Fink said the world’s largest asset manager had not seen any material change in investment behaviour from Middle Eastern sovereign wealth funds.
“We have not seen any changes in behavior,” the report quoted Fink to have said, while adding that clients were seeking more frequent guidance.
JPMorgan CEO Jamie Dimon warned of an “increasingly complex set of risks,” including geopolitical tensions, though executives said deal pipelines had remained resilient so far.
Italian luxury brand Moncler said Middle East sales fell 50% in March, though management said the decline had not materially affected the wider business.
The disclosures suggest that while the Iran war has not yet caused broad corporate disruption, its effects are becoming increasingly visible in sectors dependent on consumer confidence, tourism and regional demand.
