Leading company directors have abandoned high hopes for 2026, warning the economic pain from the conflict in the Middle East could be deeper and last longer than people realise.
From left: Elana Rubin, Michael Hirst, Helen Kurincic and Michael Wachtel were among the directors at the roundtable discussing the impact of the Iran war on the Australian economy. Eamon Gallagher
Leading company directors are bracing for the war in the Middle East to embed a prolonged period of economic pain that could tip the country into recession.
Even if US President Donald Trump pulls away from the conflict in the near term, Australia will remain under an economic cloud for some time. Business investment, they warn, is likely to be subdued after confidence has waned since the beginning of 2026.
Patrick DurkinBOSS deputy editorPatrick Durkin is Melbourne bureau chief and BOSS deputy editor. He writes on news, business and leadership. Connect with Patrick on Twitter. Email Patrick at pdurkin@afr.com
Sally PattenBOSS editorSally Patten edits BOSS, and writes about workplace issues. She was the financial services editor and personal finance editor of the AFR, The Age and the Sydney Morning Herald. She edited business news for The Times of London. Connect with Sally on Twitter. Email Sally at spatten@afr.com
James ThomsonColumnistJames Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine. Connect with James on Twitter. Email James at j.thomson@afr.com
