The ongoing war in Iran is sending shockwaves across the global economy, with oil, gas, and other commodity prices spiking rapidly since the bombing of Tehran began on February 28. The supply shockwaves are spreading across industries, including films, wine, and energy, raising concerns about inflation and economic growth.
Indian film producers have delayed the release of a major movie, 'Toxic: A Fairy Tale for Grown-ups,' due to concerns about missing out on cinema-goers in the Gulf region, a huge market for Indian films. The delay has resulted in a loss of close to $15 million in the UAE-GCC market.
India is among the economies most exposed to the war's fallout, importing about 90% of its crude oil and nearly half of its liquefied petroleum gas. The gas shortages are being felt across industries, from factories to restaurants and delivery drivers.
Winemakers in Italy are facing a 60% jump in diesel prices, making it difficult to produce wine and other products. The fuel price pressures are hitting growers and winemakers at the same time as Trump's tariffs, with wine sales slowing down globally.
The World Trade Organization has warned that the Middle East war could risk its forecast for a 1.9% increase in global goods trade this year, with international services also expected to be hurt. A sustained period of high energy prices could cut UK and euro-area GDP by about 0.5 percentage point and lift inflation by 1 percentage point.
