CINCINNATI, Ohio: Procter & Gamble has warned that surging oil prices could shave about US$1 billion off its fiscal 2027 profit, underscoring the widening impact of the war in Iran on global corporations beyond the energy and airline sectors.

The maker of brands such as Pampers and Tide said the hit reflects rising costs across packaging, raw materials, and transportation, as crude prices have climbed from around $60 a barrel before the conflict to about $100 now.

"The noise, I would call it, from the commodity exposure is significant, as a billion dollars after tax is nothing to sneeze at from a headwind standpoint," said finance chief Andre Schulten on a post-earnings call. "We have a lot of work to do, to work through the supply chain side and the cost side."

P&G's warning places it among a growing list of global firms flagging pressure from higher energy costs. Rivals, including Nestlé and Beiersdorf, have also pointed to rising expenses, with some considering price increases if commodity costs remain elevated.

The company said it is already seeing strain in its supply chain, including force majeure declarations from some suppliers unable to meet delivery commitments.

For the current fiscal year, P&G estimated a $150 million hit in the fourth quarter alone due to commodity-linked inflation, feedstock exposure, and logistics disruptions tied to the Middle East conflict.

A broader Reuters review showed that since the start of the war, dozens of companies have either cut forecasts, signaled price hikes, or warned of financial impacts, highlighting how sustained high oil prices are rippling through the global economy.

"Inflation across food, energy, healthcare, and many other areas of spending has taken a toll on consumers and how they assess value. Recent geopolitical events have elevated this to a new level of concern," Schulten said.

Analysts say oil prices are particularly significant because of their widespread influence on production and distribution costs. "Investors are very aware of the commodity cost pressures companies like P&G face. Oil is ubiquitous, and high oil prices seep into everything," said Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Despite the cost pressures, P&G reported solid quarterly results. Sales rose 7 percent to $21.24 billion, beating estimates, while adjusted earnings per share of $1.59 also came in above expectations. Shares were up about 3.6 percent following the results.

The company said product innovation and premium pricing helped drive growth, with volumes rising in three of its five business segments.

However, margins remain under pressure. Currency-neutral gross margin fell by 100 basis points, marking the sixth consecutive quarterly decline, partly due to tariffs and ongoing investments.

P&G expects fiscal 2026 earnings per share to land at the lower end of its forecast range of flat to four percent growth, reflecting continued uncertainty around costs.

CEO Shailesh Jejurikar said the company plans to keep investing in its brands despite the challenging environment. "We're increasing investments to accelerate momentum with consumers despite the challenging geopolitical and economic environment," he said.

Still, analysts caution that continued price hikes may be difficult to sustain. "The bigger concern is that much of that revenue growth was from price increases on those popular brands... they cannot continue to raise prices at this pace indefinitely," said Brian Mulberry of Zacks Investment Management.

P&G also maintained its estimate of a nearly $400 million tariff hit in fiscal 2026, though it is seeking refunds following a recent U.S. Supreme Court ruling that invalidated part of those duties.

The outlook suggests that even companies far removed from oil production are increasingly exposed to energy-driven cost shocks, with limited room to shield consumers from rising prices.