The table below presents a (non-exhaustive) list of industries impacted by the conflict and its consequences. It focuses in particular on areas where disruption may be less immediately obvious or visible, but where supply chains, costs, demand patterns and operational risks are nonetheless being reshaped.
| Industry | Examples of impacts |
|---|---|
| Agriculture | The Middle East accounts for a large share of global fertiliser exports; disruption to production and shipping is tightening supply and pushing up input costs for farmers worldwide. |
| Automotive manufacturing | Shortages of aluminium and petrochemical-derived inputs (plastics, synthetic rubber, resins) from the Gulf are creating bottlenecks in vehicle and component production. |
| Batteries | Reduced availability of sulfur and petroleum coke from the Gulf is increasing costs for battery materials such as synthetic graphite — which in turn adds pressure to electric vehicle supply chains. |
| Civil aviation | Jet fuel prices have roughly doubled and physical shortages may emerge once reserves run down; on 16 April 2026 the head of the International Energy Agency (IEA) warned that Europe had "maybe six weeks of jet fuel left". Some airlines have already begun to cancel flights and/or increase fees. |
| Food and beverages | CO₂ shortages caused by disrupted fertiliser production (which in turn depends on natural gas supply) could threaten operations in brewing, fizzy drinks, animal slaughter and food packaging, with UK authorities warning of possible gaps on supermarket shelves if the Iran war continues. |
| Pharmaceuticals | Many generic medicines are manufactured in India and routed via Middle East air-cargo hubs; conflict-related logistical disruptions are raising costs and leading to delays, particularly for cold-chain medicines. |
| Semiconductors | Helium shortages linked to disrupted Gulf gas production threaten chip manufacturing processes that rely on ultra-low-temperature cooling. |
| Steel | Significant supply chain disruption is squeezing steelmakers’ margins, as avoidance of Hormuz shipping routes disrupts exports of key input materials (such as high-grade iron ore pellets) and raises freight costs. |
| Telecoms and data centres | Data centres in the Gulf have been the target of drone strikes, causing outages and regional service instability. Meanwhile, disruption to chip manufacturing (see above) and higher electricity costs due to elevated energy prices may also put the industry under pressure. |
| Tourism and hospitality | Hotels and destination services in the Gulf and neighbouring regions face reduced bookings and tourism-related spending, particularly if conflict persists. Dubai, for example, has seen a significant downturn in visitor numbers. |
Industry profiles
Explore our in-depth briefings on a wide range of industries — written, researched and fact-checked by ICAEW librarians.
Can't find what you're looking for?
The ICAEW Library can give you the right information from trustworthy, professional sources that aren't freely available online. Contact us for expert help with your enquiries and research.
Doing business in the Middle East
Support for finance practitioners doing business in the Middle East, including insights on the implications of the geo-political situation for local and UK businesses.
Explore our resources