The Iran war has increased freight costs and prices for petrochemical derivatives used in packaging. P&G's third-quarter gross profit margin is expected to drop to 0.03%, according to data compiled by LSEG. The company is also expected to signal that its fiscal 2026 earnings per share and sales could fall at the lower end of its target of flat to 4%. The company's shares have dropped nearly 15% since the war began, compared to the S&P 500 Consumer Staples index which has risen about 4%.