U.S. war with Iran forces CEOs to prepare for the worst—from rising energy prices to cyber attacks |
U.S. war with Iran forces CEOs to prepare for the worst—from rising energy prices to cyber attacks
In today’s CEO Daily: Diane Brady on the Iran war’s immediate aftershocks for business leaders.
The big leadership story: The Iranian conflict wreaks havoc in the Middle East’s financial hubs.
The markets: Down as investors come to grips with another Gulf war.
Plus: All the news and watercooler chat from Fortune.
Good morning. It’s hard to predict the future scope and scale of the U.S.-Israeli attacks on Iran, which began this weekend. The conflict quickly spread to Dubai, Doha, and other parts of the Persian Gulf, and business leaders are preparing for the worst. That means stress-testing contingency plans, communicating with stakeholders, checking supply-chain risk and all the other things that should be second nature to any global operator in a crisis. Some potential impacts for U.S. firms:
Energy Prices – Brent crude prices rose 10% yesterday to around $80 a barrel. If Iran closes off the Strait of Hormuz, where a fifth of the world’s oil passes, mostly bound for Asia, that price could hit $100. And crude remains a key driver of prices at the pump, with the U.S. Energy Information Administration calculating that a $10 increase in crude prices roughly translates to an additional 25 cents per gallon. Cheaper gas has been one area of relief for Americans struggling with a rising cost of living from tariffs, housing and sluggish wage growth.
Security – Iran, already a major source of state-sponsored cyberattacks, is likely to ramp up activity so it’s a good time to review protocols........