The Iran war has resulted in a 15% drop in major luxury stocks, with shares of LVMH and Hermès falling roughly 16% and 20%, respectively, and the S&P 500 falling less than 6%. Major luxury car companies, including Bentley, Maserati, and Ferrari, have suspended deliveries to the Middle East due to security risks and logistics. The Middle East, which accounts for about 6% of global luxury sales, is seen as crucial for the industry as it was the fastest-growing luxury market in the world last year, posting growth of between 6% and 8% compared to flat growth globally. However, analysts suggest that if sales in the region fall by half in March, it could reduce quarterly growth by about 1 percentage point for many luxury companies. The industry was anticipating a recovery in 2026, with China showing slight improvements in sales after years of declines. However concerns about the impact on Dubai's reputation for safety and security have been raised, and higher oil prices could also negatively impact luxury sales.