On the contrary, public confidence is declining, which is ultimately having a negative impact on the financial situation. A report by the British news agency Reuters on Wednesday (April 22) highlighted the uncertainty created in almost every sector of the global economy due to the closure of the Strait of Hormuz and the impact of the energy crisis. The impact of which will become more evident in the coming months.
According to the report, companies were already struggling with US tariffs, high raw material prices and weak demand before the war began in late February. The war has added to those pressures. AkzoNobel, the maker of the famous Dulux brand of paint, said the war had caused supply costs to rise significantly.
“Our raw material costs will increase by about 20 percent due to the disruption in the Strait of Hormuz. We will see the full impact of this in the next six months,” said Gregg Pox-Guillaume, the company’s chief executive.
AkzoNobel is a multinational paint and coatings company based in the Netherlands. They sell a variety of brands of products, from decorative paints to specialty coatings used on cargo ships and Formula 1 cars. When AkzoNobel’s products increase in price, it is passed directly to consumers.
Read more: Panama reacts strongly to ship seizure in Hormuz
According to a Reuters review, 21 companies have lowered or withdrawn their financial targets since the war began. 32 companies have signaled price increases and 31 companies have expressed concerns about financial losses due to the war.
French food manufacturer Danone said baby food shipments from Europe through the Middle East have been severely affected by the war, with sales growth slowing compared to last year.
Similarly, Dettol soap maker Reckitt predicted a decline in profits due to higher oil prices. Reckitt’s share price also fell 5 percent, its lowest since October 2024.
The tourism sector has been hit hardest by the Iran war. Rising jet fuel prices are forcing airlines and tour operators to raise ticket prices. Some flights are also being canceled. At the same time, geopolitical tensions are reducing consumer interest in traveling.
Read more: Trump’s naval blockade responsible for diplomatic deadlock: Iran
German tourism group TUI has cut its annual profit target, citing war uncertainties. United Airlines in the US also said it was under pressure from falling demand and full-year profits could be below expectations.
The mining industry is also under pressure. Mining company South 32 has indicated it may reduce production at its Australian manganese unit. The company said that tensions in the Middle East have significantly increased its transportation costs and raw material prices. It has taken steps to mitigate the potential impact on supply chains and is closely monitoring the situation.
“We could have raised our revenue target even further if it weren’t for the uncertainty of war,” said Larry Culp, CEO of GE Aerospace, a world leader in providing aircraft engines, systems and services for commercial and military aviation.
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