Middle East war spreading to luxury goods, luxury goods giants market value evaporates by billions of dollars.

The impact of the current situation in the Middle East is gradually spreading to the high-end consumer market. From luxury cars to luxury goods, there are fluctuations in demand from high net worth individuals. The market is concerned that the conflict will not only impact short-term sales, but could also further weaken global confidence in high-end consumption through energy prices and financial markets. The Middle East is an important and highly profitable growth market for many luxury and high-end car manufacturers. For example, Ferrari delivered 626 cars to the Middle East in 2025, surpassing the performance in the markets of the UK, Switzerland, and France respectively. However, after the conflict broke out, Ferrari suspended the shipment of most models to the Middle East, and its stock price has also fallen by over 16% in the past month. Apart from luxury cars, the overall luxury goods market will also be under pressure. Since the conflict erupted, the stock prices of luxury goods companies have fluctuated frequently, leading to a total market capitalization loss of about $100 billion for major luxury goods giants including LVMH and Herms.