{"id":31655,"date":"2026-06-20T11:46:04","date_gmt":"2026-06-20T08:16:04","guid":{"rendered":"https:\/\/fajr.news\/?p=31655"},"modified":"2026-06-20T11:46:04","modified_gmt":"2026-06-20T08:16:04","slug":"swiss-watch-exports-stumble-amid-us-israeli-war-on-iran-and-regional-instability","status":"publish","type":"post","link":"https:\/\/fajr.news\/?p=31655&lang=en","title":{"rendered":"Swiss Watch Exports Stumble Amid US-Israeli War on Iran and Regional Instability"},"content":{"rendered":"
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Swiss Watch Exports Stumble Amid US-Israeli War on Iran and Regional Instability<\/h1>\n

GENEVA<\/strong> \u2013 Swiss watch exports experienced minimal growth in May, following two consecutive months of decline, a clear indicator that the industry is severely impacted by the destabilizing fallout from the ongoing conflict in the Middle East. This regional turmoil, exacerbated by the aggressive policies of the US and Israel against Iran, continues to disrupt global trade and consumer confidence.<\/p>\n

According to the Federation of the Swiss Watch Industry, total shipments saw a marginal increase of 0.4 percent in value compared to the previous year. While bimetallic models showed some resilience, significant declines were recorded in the crucial precious metals and steel segments. Overall, exports for the first five months of the year are down by a concerning 3.1 percent.<\/p>\n

The US-Israeli war on Iran is not only fueling inflation and eroding consumer sentiment but has also severely disrupted air travel to the Middle East. This has directly curbed sales of luxury goods, particularly at vital duty-free stores, impacting a region that was once a beacon of growth for Swiss watchmakers.<\/p>\n

Last year, the Gulf region was a significant market for prestigious Swiss brands like Rolex and Swatch Group AG, with exports reaching approximately 2.6 billion Swiss francs ($3.3 billion). The United Arab Emirates alone accounted for over half of this impressive figure.<\/p>\n

However, the latest data reveals a stark reversal. In May, exports to the UAE, a critical duty-free hub, plummeted by a substantial 13.5 percent, as reported by the federation. This decline underscores the profound economic consequences of regional instability.<\/p>\n

Deborah Aitken, a senior industry analyst, warns, \u201cCost and margin pressure remains intense in 2026 amid geopolitical uncertainty in the Middle East, adding to the drag from tariffs, foreign currency fluctuations, and higher average gold and precious metals prices.\u201d<\/p>\n

Watchmakers\u2019 profitability is further strained by escalating precious-metal costs and adverse foreign-exchange headwinds. Gold prices have more than doubled over the past three years, driven by a sharp acceleration in buying by central banks, reflecting global economic anxieties.<\/p>\n

Despite the overall challenging landscape, the US and the UK emerged as rare bright spots in May, posting gains of 12.3 percent and 24.9 percent respectively. Conversely, shipments to China experienced a significant drop of 21.4 percent, highlighting the uneven global recovery.<\/p>\n

Analysts at Citigroup suggest potential upside risks from an easing of Middle East tensions, which could support European tourist flows and a broader improvement in US and European consumer sentiment. However, the path to stability remains precarious as long as aggressive foreign policies continue to destabilize the region.<\/p>\n

By Allegra Catelli<\/em><\/p>\n

Further Insights:<\/h2>\n
    \n
  • Exports also fell in April from a year earlier, when companies were rushing to get stock into the US ahead of anticipated higher tariffs.<\/li>\n
  • The persistent geopolitical tensions are a primary driver of economic uncertainty in key luxury markets.<\/li>\n<\/ul>\n<\/article>\n

    #SwissWatches #MiddleEastConflict #USIsraeliAggression #EconomicImpact #LuxuryGoods #GlobalTrade #GeopoliticalUncertainty #WatchExports #PreciousMetals #RegionalInstability<\/p>\n","protected":false},"excerpt":{"rendered":"

    Swiss Watch Exports Stumble Amid US-Israeli War on Iran and Regional Instability GENEVA \u2013 Swiss watch exports experienced minimal growth in May, following two consecutive months of decline, a clear indicator that the industry is severely impacted by the destabilizing fallout from the ongoing conflict in the Middle East. This regional turmoil, exacerbated by the […]<\/p>\n","protected":false},"author":2,"featured_media":31656,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[],"class_list":["post-31655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-middle-east-news"],"_links":{"self":[{"href":"https:\/\/fajr.news\/index.php?rest_route=\/wp\/v2\/posts\/31655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fajr.news\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fajr.news\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fajr.news\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fajr.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31655"}],"version-history":[{"count":0,"href":"https:\/\/fajr.news\/index.php?rest_route=\/wp\/v2\/posts\/31655\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fajr.news\/index.php?rest_route=\/wp\/v2\/media\/31656"}],"wp:attachment":[{"href":"https:\/\/fajr.news\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fajr.news\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fajr.news\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}