The shadow of the Middle East conflict hangs over the luxury goods industry, with the European STOXX Luxury 10 Index hitting a three-year low.

Since the escalation of the Middle East conflict on February 28th, the European Stoxx Luxury 10 Index, including 10 well-known companies such as LVMH, Richemont, Hermes, and Ferrari, has fallen by over 16%, hitting a new low in over three years. The latest report from the research firm Bernstein estimates that luxury goods sales in the Middle East region will halve in March due to a sharp decline in foreign tourists. "The Middle East was one of the few certain growth pillars in the luxury goods industry within the 2026 cycle. The timing of this outbreak of geopolitical conflict is particularly tricky for the industry," said Sorka, a senior analyst in the luxury goods industry at the company. "Rising energy prices may increase the possibility of a global economic recession. If this happens, the non-essential consumer goods industry will certainly be affected, and the luxury goods industry is one of them."