Middle East concerns weigh on performance prospects, Toyota's stock price plunges.

The impact of the Iran conflict on the automotive supply chain has raised market concerns and cast a shadow over company profit prospects, with Toyota shares falling by as much as 2%, marking the largest drop in three weeks. According to Kyodo News, due to the conflict, Toyota will reduce production of pickups and other models destined for the Middle East market in the Asian region. Nomura Securities analysts pointed out in a research report that the automotive industry supply chain is longer and covers more regions than other industries, making car companies particularly vulnerable to supply chain disruptions. They stated, "Uncertainties such as parts shortages will continue to drag down the industry, and we maintain a cautious view on the entire automotive sector." They added that during this earnings season, both vehicle manufacturers and component suppliers may release more conservative performance forecasts.