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How Is The Iran Conflict Impacting Luxury Stocks

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The ongoing Iran war has wiped out nearly $100 billion in value from global luxury stocks, as geopolitical tensions hit investor confidence and demand, according to analysts cited in the report. Shares of major firms like LVMH, Hermès and Ferrari have dropped sharply, far underperforming the broader market.

The report said the Middle East, a fast-growing luxury market, is now facing a sharp slowdown. Analysts warned sales in the region could fall by as much as 50% in a worst-case scenario, as conflict disrupts travel, retail activity and consumer sentiment.

Luxury carmakers including Bentley and Maserati have paused deliveries due to security concerns. Executives said wealthy buyers in the region are prioritizing stability over discretionary spending.

Despite resilience in the U.S. and signs of recovery in China, analysts caution that prolonged conflict and higher oil prices could further dampen global luxury demand and delay the sector’s expected rebound.

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