Australia's corporate landscape is beginning to show signs of strain due to the ongoing conflict in the Middle East. Major companies, including Qantas Airways and Westpac Banking Corp, have issued profit warnings, attributing their concerns to soaring fuel prices and a dip in consumer demand. Qantas highlighted that its jet fuel costs could rise by up to A$800 million ($567 million), a 32% increase compared to previous forecasts, leading the airline to cut flights and raise fares. Westpac has raised its credit provisions, anticipating that rising prices and interest rates will create a more challenging environment for borrowers. This comes as the National Australia Bank reported a 29-point drop in business confidence, a level typically seen during major crises, while consumer sentiment has declined by 12.5% to its lowest in over two years. Analysts warn that if the conflict continues, the risk of stagflation—characterized by rising inflation and stagnant economic growth—will increase, posing further challenges for Australian businesses.