The U.S.-Israeli war on Iran is straining Australian and New Zealand companies as increased gasoline prices drive inflation, lower business and consumer confidence, and worse corporate earnings.

New Zealand’s dairy producer reported that the conflict was affecting their supply chain, potentially leading to higher inventory levels and expenses in the second half of the year and adding to global commodity price volatility.

In response to the war, packaging manufacturer Orora reduced its annual earnings prediction for French affiliate Saverglass and halted its share buyback program.
The company also halted bottle manufacturing at its Ras al Khaimah glass facility in the UAE owing to shipping route closures.

In the first half of the financial year ended March 31, Westpac, Australia’s second-largest bank by assets, faced profit challenges from energy market shocks from the conflict, leading to an increase in credit provisions.
Westpac’s treasury and markets division’s net interest margin decreased due to conflict-related interest-rate volatility and increased credit provisioning given a poorer outlook.