Seven months later, and there is no end in sight to the Iran war.
AFP via Getty Images
A recent announcement by PwC that its revenues in the UK and Middle East have declined by 3% is a stark reminder of the continuing impact of the Iran war on corporations and financial institutions. Moreover, persistently high oil prices are pushing inflation upward, making corporate pricing strategies challenging. Simultaneously, today’s Federal Reserve rate hike, means that corporate and individuals’ borrowing rates will continue to climb, constricting capital expenditures across the economy.
Corporate Beneficiaries
Major energy producers and financial institutions have posted massive revenue and profit increases from high commodity prices and trading activity.
A variety of sectors have benefitted financially from the Iran conflict.
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Sectors Facing Operational Losses, Cost Surges, and Supply Chain Disruptions
Using publicly available information and data shows that supply chain disruptions, transportation cost spikes, and material shortages have negatively affected companies across various sectors. In May 2026, a Reuters analysis found that at least 279 major companies globally cited the conflict as a trigger for defensive financial actions, such as production cuts or price increases. Almost four months later, more companies have been adversely impacted.
Automotive, manufacturing, and consumer goods companies have faced margin compression due to higher input costs for energy, aluminum, and specialized materials, even if specific aggregate tallies for total revenue declines across all U.S. firms are not tracked in a single public database.
As long as the Iran conflict continues, these sectors will continue to be hard hit.
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The Insurance Industry
The Iran war’s net impact on the insurance sector remains earnings-neutral to slightly positive. While broad property and casualty (P&C) insurers insulation themselves through strict policy exclusions, specialized marine, aviation, and energy underwriters captured historic revenue windfalls.
Insurance Company Comparison
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The Inflation Wild Card: A New CBO Warning
A Congressional Budget Office letter to Congress released September 15, 2026 details how reduced shipments through the Strait of Hormuz and Red Sea disruptions are driving consumer prices higher. The agency projects year-over-year inflation in the first quarter of 2027 to exceed pre-conflict forecasts by 0.5 percentage points, with core inflation rising 0.3 percentage points, driven largely by sustained high crude oil prices and increased borrowing costs.
And now that the Federal Reserve has raised rates and is signaling that it will raise rates again soon, higher borrowing costs for individuals and companies will continue to weigh on companies that are not in the energy or defense sectors. As long as the Iran conflict continues, even companies that have benefitted financially may end up in trouble since their costs of borrowing will continue to rise.
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