The war involving the United States, Israel and Iran is sending shockwaves through global business, pushing up energy costs, tightening supplies of key raw materials and raising concerns over the security of vital trade routes that carry goods ranging from food to automotive components.
Below are some of the key disruptions so far:
Travel disruption
The conflict has caused tens of thousands of flight cancellations, reroutings and schedule changes worldwide, with large portions of Middle Eastern airspace— including Qatar’s—closed because of missile and drone threats.
The situation has plunged global aviation into its most severe disruption since the COVID-19 pandemic. Operations at Dubai International Airport, the world’s busiest international passenger hub, have been heavily affected, while other regional transit hubs have come under pressure as long-haul travel routes are altered.
Some stranded travellers have turned to private jets to leave the Gulf, while others have taken lengthy taxi journeys across the desert to Riyadh in Saudi Arabia in hopes of catching flights home.
The conflict has also disrupted a key oil export route, triggering a sharp rise in jet fuel prices that is pushing up airfares and raising fears of weaker travel demand. Air cargo has also been affected, with shipments of goods such as fresh produce and aircraft parts delayed as cargo capacity tightens and freight rates climb.
Airlines
The closure of Gulf airspace quickly affected airline networks and weighed on aviation stocks.
Fares on routes between Asia and Europe have surged, with some airlines such as Wizz Air and Lufthansa adjusting flight paths, while Ryanair has seen higher demand for short-haul services.
Jet fuel prices—already the second-largest expense for airlines after labour—have doubled since the conflict began, adding further strain on carriers.
Even airlines that hedge fuel costs are introducing higher ticket prices, fuel surcharges and capacity reductions as refining margins soar.
For pilots, the situation has made flying more hazardous, with drone activity increasing risks in the skies.
Indian airlines have also been hit hard. The Middle East is a key corridor for flights between India and Europe or the United States, especially since Pakistan barred Indian carriers from its airspace last year.
Defence sector
The United States has deployed a range of weapons in strikes on Iranian targets, including Tomahawk cruise missiles, stealth aircraft and, for the first time in combat, inexpensive one-way attack drones inspired by Iranian designs.
Artificial intelligence tools from Anthropic, including its Claude platform, were also reportedly used in the operations.
However, the Pentagon recently classified the AI developer as a supply-chain risk, preventing government contractors from using its technology for military work. The decision followed disagreements over safeguards the company sought to impose on its systems.
Earlier this month, U.S. President Donald Trump met executives from seven defence companies as the Pentagon looks to replenish weapons stocks depleted by operations against Iran and other military actions.
Critical metals and raw materials
The conflict is also affecting industrial supply chains. Qatalum, a major aluminium smelter in Qatar, began winding down operations last week, while Aluminium Bahrain halted shipments and declared force majeure after shipping through the Strait of Hormuz became impossible.
The Gulf region produces about 8% of the world’s aluminium, and the disruption has pushed aluminium prices on the London Metal Exchange sharply higher. Physical premiums in Europe and the United States have also risen to multi-year highs.
Nickel producers in Indonesia could also face production cuts because they rely on the Middle East for about 75% of their sulphur supply, which is increasingly difficult to ship due to the conflict.
Food, fashion and luxury goods
The crisis has also disrupted global retail supply chains. Some clothing shipments bound for major retailers have been stranded at airports in Bangladesh and India as flights were affected.
South Asia is a major hub for garment manufacturing, supplying fast-fashion brands worldwide with a steady flow of clothing such as T-shirts, dresses and jeans.
Luxury goods companies—including groups such as Richemont and Zegna—are also facing pressure as the industry struggles to recover from slowing demand.
In India, restaurants and hotels have warned of potential disruptions as supplies of cooking gas tighten due to the conflict, prompting authorities to review industry concerns.
The country’s packaged water industry is also seeing price increases for distributors as supply chain issues affect materials ranging from plastic bottles to caps, labels and cardboard packaging. Higher oil prices have pushed up the cost of polymer, a crude-oil-derived material used to make plastic bottles.
Chips and data centres
South Korean officials have cautioned that a prolonged conflict could interrupt supplies of key semiconductor materials sourced from the Middle East, including helium, which is essential for chip manufacturing and has no viable alternative.
Drone strikes that damaged some of Amazon’s data centres in the United Arab Emirates and Bahrain have also raised concerns about technology supply chains and the pace of expansion by major tech companies in the region.
Banks
Financial institutions are also taking precautionary measures. Citigroup and Standard Chartered have reportedly asked staff in Dubai to work from home following threats by Iran against Gulf banking interests linked to the United States and Israel.
HSBC has temporarily closed all of its branches in Qatar, according to a notice to customers, citing safety concerns for employees and clients.
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