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Boeing asks suppliers to check for Middle East impact as war rages
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Boeing asks suppliers to check for Middle East impact as war rages
Mar 16, 2026 1:47 PM

* Boeing ( BA ) asks suppliers to assess Middle East impact on

production

* Airbus and Embraer ( EMBJ ) also monitoring supply-chain

disruptions

* Prolonged conflict may affect long-term aircraft

demand, analysts say

By Allison Lampert

March 16 (Reuters) - U.S. planemaker Boeing ( BA ) has

asked suppliers to identify any impact to production caused by

the U.S.-Israeli war on Iran, according to a message to

suppliers seen by Reuters, as industry concerns rise that a

longer conflict could further constrain aircraft production.

Global planemakers are speaking with suppliers and customers as

they assess the impact of a war now in its third week, which has

pushed oil prices to about $100 a barrel with no clear end in

sight. The conflict has disrupted flights and shipping, with

Reuters reporting delays in transporting aircraft parts to

Middle East carriers.

In a recent online communication to suppliers, Boeing ( BA ) asked

companies working on its commercial programs to identify by

March 9 any work carried out in the Middle East, including by

sub-tier suppliers, and any operational impacts.

"As we continue to monitor the situation in the Middle East,

we are assessing potential impacts to the stability of our

supply chain," said the message.

Boeing ( BA ) declined to comment.

MIDDLE EAST NOT MAJOR PARTS HUB

While the Middle East region is not considered a major

manufacturing hub of components for new planes, suppliers like

Strata in the United Arab Emirates make parts for Boeing's ( BA ) 787

Dreamliner jet. Boeing ( BA ), however, also sources parts like the

vertical fin from other sites.

Strata was not immediately available for comment.

AIRBUS AND EMBRAER ALSO ON ALERT

A senior supply-chain source said the shipping and air

disruption at one of the world's critical transit points could

have an impact on Boeing's ( BA ) European rival Airbus if the

war dragged on beyond a few weeks.

A spokesperson for Airbus said the planemaker is in close

dialogue with customers and suppliers across the region.

Brazilian planemaker Embraer ( EMBJ ) has also questioned

suppliers about the impact of the conflict on output and

transport costs, a source familiar with the matter said.

In response to questions from Reuters, Embraer ( EMBJ ) referred to

comments by CEO Francisco Gomes Neto, who told analysts on March

6 that the planemaker was "taking care of our suppliers, both

direct and indirect in the region" and had not seen any "impact

in deliveries or even short-term sales."

While the impact on aerospace has so far been limited, some

analysts say a prolonged conflict that keeps oil prices high

could weigh on demand for new aircraft. Some Gulf carriers are

among the largest buyers of wide-body jets from Boeing ( BA ) and

Airbus.

"What I'm really more concerned about is long-term demand

for jets in the region," said Richard Aboulafia, managing

director at U.S. consulting firm AeroDynamic Advisory.

The world's largest commercial planemakers, along with

business jet makers, are ramping up production as aircraft

supply continues to lag demand, swelling order backlogs. That is

adding strain to a supply chain already facing rising demand

from the defense sector.

A separate industry source said some planemakers are also

weighing the risk that the U.S. Trump administration could

invoke the Defense Production Act to compel suppliers to

accelerate output to support the conflict. If applied broadly,

such a move could weigh on commercial aerospace, since many

suppliers serve both defense and civilian programs.

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