From pricing power to production pain
First it was the classic corporate move: pass costs on to customers and hope nobody notices. Now the playbook is getting uglier. Businesses across industries are starting to cut output as the war in Iran ripples through supply chains, energy costs, and operational planning.
Why this matters for your portfolio
That matters because output cuts are the corporate version of putting the car in park on the freeway — not ideal, and usually not a sign that things are fine. Airlines, chemicals, and other energy-sensitive industries can see a double hit: higher input costs plus less volume to spread those costs across.
The knock-on effects
A few things investors should watch:
- margins get squeezed when companies can’t simply hike prices anymore
- volumes can fall even if demand is still hanging in there
- industries tied to fuel, shipping, and industrial inputs tend to feel the pain first
Big picture
This is the moment where a geopolitical story starts looking like an earnings story. If the conflict drags on, the damage can move from “temporary disruption” to “guidance problem” pretty fast.