Not only are South Africans suffering the consequences at fuel pumps like the rest of the world, but Reuters reports on the wider ripple effects of the crisis in the Middle East.

According to a Reuters review of company statements since the start of the war, 21 companies have withdrawn or cut financial guidance, 32 have signalled price hikes and 31 have warned of a financial hit from the conflict.

Dettol soap maker Reckitt warned of lower first-half margins, citing high oil prices, sending its shares to October 2024 lows.

French food group Danone highlighted how pressures are filtering through supply chains, citing war-related disruption to baby formula shipments alongside a baby formula recall in Europe.

In China, a warning of higher condom prices by the world's top maker has gone viral, with the hashtag "condom prices rising" garnering more than 60 million views by Thursday on Chinese social media and stoking talk of stockpiling.

This followed comments by the boss of condom maker Karex Bhd, Goh Miah Kiat, who said the Malaysian company planned to raise prices by 20% to 30% and possibly more if supply chain disruptions due to the Iran war drag on.

The Middle East conflict has caused a shortage of Diet Coke in India, where it is sold only in aluminium cans that have run short because of delayed shipments from the Gulf.

Elevator maker Otis Worldwide said its new equipment sales were hurt by war-related shipment delays and tariffs.

TE Connectivity will have to pass on higher freight costs and prices of oil-based products such as resin to customers if the war is prolonged, Chief Executive Terrence Curtin told Reuters.

Travel companies have been hit hard as higher jet fuel prices force airlines and tour operators to hike fares, add fuel surcharges or ground aircraft, while geopolitical tension dents consumer confidence.

"The longer this war lasts, the more we'll see these companies with less pricing power reduce guidance," Brian Madden, chief investment officer at First Avenue Investment Counsel, says. "And the more we'll see companies that do have pricing power pass on the price increase to consumers and businesses, resulting in potentially higher inflation."

Crude oil is used in so many manufacturing sectors, ranging from chemicals and packaging to fertilisers, which could pose a serious challenge to South African and broader African food production, according to the UN World Food Programme.

Interestingly, all of this has a small silver lining for South Africa: southern African ports are benefiting from a rise in vessel calls and bunkering demand as shipping diverts around the Cape, according to a recent report on CNBC Africa.

Image: AI Generated.