US–Iran war continues uncertainty for global auto industry

The ongoing US-Iran conflict, particularly the disruption within the Strait of Hormuz, is creating significant uncertainty and negative impacts for the global automotive industry. S&P Global Mobility has updated its forecast, predicting a reduction of 200,000 light-vehicle sales in GCC countries and a global drop of 800,000 to 900,000 units in 2026, largely due to increased costs, supply chain disruptions, and economic pressures from higher oil prices impacting both light and heavy-duty vehicle sectors. The severity and duration of the war remain the primary factors determining the full extent of the damage and recovery effort needed for the automotive market.