From paint to planes, Iran war lifts costs, darkens outlooks

BusinessInternationalFrom paint to planes, Iran war lifts costs, darkens outlooksBy Reuters -Apr 22, 2026Companies from consumer goods to travel and mining warned on Wednesday that the US-Israeli war with Iran is driving up costs, disrupting supply chains and ‌hurting consumer confidence, clouding financial outlooks. The cautious tone so far in the earnings season highlights the pressure on businesses already hit by US tariffs, higher input costs and weak demand before the conflict erupted in late February. While some companies stuck to their full‑year forecasts, executives flagged rising transport and raw material costs, particularly linked to disruption in the Strait of Hormuz, and sharply reduced visibility. Dulux paint maker AkzoNobel said the conflict was pushing up ​supply costs, though higher pricing and cost savings helped it beat market expectations. “Our raw material basket is going to go up by something like the high teens (percentage), given ​the disruption of the Strait of Hormuz,” CEO Greg Poux‑Guillaume told Reuters, saying the full impact would be felt over the next two ⁠quarters. AkzoNobel’s branded products used on cargo ships and Formula 1 cars give it greater scope to pass on price increases than more commodity chemical‑exposed peers. Investors and economists are watching to see whether companies ​can absorb the shock, or if prolonged uncertainty over energy, transport and geopolitics forces more firms to raise prices further or rein in forecasts. Much hinges on how long the conflict lasts ​and whether the Strait of Hormuz — a conduit for about a fifth of global oil and LNG flows — fully reopens, easing supply constraints. U.S. stock futures rose and oil prices were up slightly on Wednesday after reports of attacks on container ships in the Strait. “The longer this war lasts, the more we’ll see these companies with less pricing power reduce guidance,” Brian Madden, chief investment officer at First Avenue Investment Counsel, said. “And the more w...