Toyota, the world's largest automaker, anticipates a $4.3 billion impact from the ongoing Iran war, as rising costs and supply disruptions overshadow strong demand for hybrid vehicles. The company reported a staggering 50% drop in quarterly earnings, with operating profit falling to 569.4 billion yen ($3.6 billion) for the three months ending March 31, compared to 1.1 trillion yen a year prior. For the current fiscal year, Toyota expects a total operating profit of 3 trillion yen, significantly lower than the 4.59 trillion yen median estimate from analysts. Despite the challenges, Toyota aims to sell over 5 million hybrid vehicles this year, driven by increased demand for fuel-efficient cars amid rising fuel prices. However, the company faced a sharp decline in sales in the Middle East due to shipment disruptions. The latest forecasts come under the leadership of new CEO Kenta Kon, who is tasked with navigating the complexities of tariffs and competition from Chinese automakers.