Impact of Iran Conflict on Automotive Industry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 18 2026
0mins
Source: Fool
- Rising Restructuring Costs: Honda, Ford, General Motors, and Stellantis face nearly $70 billion in restructuring costs aimed at pivoting away from EV strategies, yet the Iran conflict complicates market outlooks, prompting investors to reassess risks.
- Middle East Market Disruption: The conflict will directly impact automotive sales in Iran and complicate inventory distribution and supply chain management in the Middle East, posing significant risks especially for rapidly expanding Chinese automakers.
- Oil Price Surge Expected: With one-fifth of the world's oil supply passing through the Strait of Hormuz, Iranian officials have indicated they will restrict passage, leading to short-term gasoline price increases that may push consumers towards EVs and hybrids, although this shift is still in its early stages.
- Consumer Behavior Changes: While rising gas prices may encourage consumers to consider EVs, the ongoing increase in new vehicle prices suggests that consumers are more likely to adjust their purchasing habits rather than make immediate large-ticket vehicle decisions, limiting overall demand changes in the short term.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 11.370
Low
11.00
Averages
13.65
High
16.00
Current: 11.370
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Repair Cost Considerations: The upcoming 2027 electric pickup will replace hundreds of smaller components with two large aluminum castings, which may lower repair costs but could also lead to higher expenses for consumers when replacing large parts after accidents.
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