A slate of second-quarter earnings could present the clearest corporate scorecard of the Iran conflict’s impact to date. US oil majors and refiners are expected to report record profits as higher crude and fuel prices “trigger a wartime windfall,” The Financial Times reported, likely boosting US President Donald Trump’s case that the industry is profiteering off the fighting.
Meanwhile, Gulf companies’ upcoming results are set to reveal a more uneven impact, Reuters noted: Energy firms saw potential gains from price swings, while airlines, retailers, banks, and real estate companies have shown signs of strain owing to disrupted shipping and weaker tourism and consumer demand.
With the US-Iran ceasefire in jeopardy, the region’s risk premium is likely to stay, a strategist said.
