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Japanese automakers are facing a dual impact from the effects of the Iran conflict and the potential appreciation of the yen. Recently, Toyota, Honda, and Nissan have all benefited from the historically weak yen, with Toyota and Honda raising their annual earnings forecasts, and Nissan achieving its first profit in nearly two years. However, as the yen strengthens, these advantages may reverse. Vincent Sun, a senior equity analyst at Morningstar, noted that a stronger yen will force automakers to choose between raising prices overseas and sacrificing profits; the former may lead to a loss of market share, while the latter will compress the yen value of overseas profits after conversion. Bernstein forecasts that for every 1% appreciation of the yen, Japanese automakers' operating profits are typically impacted by about 2%, with some companies facing an impact of up to 4%. Analysts also believe that the ongoing conflicts in the Middle East could drive up costs for key raw materials such as naphtha, resins, aluminum, copper, steel, and chips, while increasing shipping risks in the Strait of Hormuz and the Red Sea, further squeezing automakers' profit margins.