The fighting in the Middle East is spreading to luxury goods, and giants such as LV and Hermès have seen a combined market value plunge by up to a trillion dollars.

According to CCTV Finance on April 3, the impact of the Middle East situation is gradually filtering through to the high-end consumer market. From luxury cars to luxury goods, demand that depends on high-net-worth individuals has started to fluctuate. Market concerns: the conflict will not only hit short-term sales, but may also further weaken global high-end consumer confidence through energy prices and financial markets. The Middle East is an important and high-profit growth market for many luxury and high-end car manufacturers. Taking Ferrari (RACE.US) as an example, in 2025 it delivered 626 vehicles to the Middle East—this figure exceeded the performance of the UK, Switzerland, and France within their respective markets. However, after the outbreak of the conflict, Ferrari suspended shipments of most of its models to the Middle East, and its share price has fallen by more than 16% over the past month. Beyond luxury cars, the overall luxury goods market will also face pressure. Since the outbreak of the conflict, luxury companies’ share prices have been fluctuating frequently, resulting in a total market value loss of about $100 billion for major luxury giants including LVMH and Hermès.