Middle East Conflict Hits Luxury Market, Wiping $100 Billion from High-End Brands

Escalating tensions in the Middle East are impacting the global luxury consumption market. Several luxury automakers and high-end brands have seen their operations disrupted and share prices decline due to regional conflict, resulting in a combined market value loss of approximately $100 billion. The Middle East is a highly profitable market; for instance, Ferrari delivered 626 vehicles to the region in 2025—more than its sales in the UK, Switzerland, or France individually. Following the outbreak of conflict, Ferrari suspended shipments of most models to the Middle East, and its stock has dropped more than 16% over the past month. Meanwhile, shares of major luxury groups such as LVMH and Hermès have also experienced significant volatility, as markets worry that the conflict could further dampen global luxury demand through higher energy prices and financial market instability.