BANGKOK, June 4 (Xinhua) -- A study showed on Thursday that around 40 percent of Thai listed companies, totaling 335 firms, reported being impacted by the ongoing Middle East conflict in their first-quarter 2026 management discussion and analysis reports.

According to analysis by Krungthai COMPASS, the impact extends across all levels of the Thai capital market, with 80 percent of the affected companies listed on the Thai Stock Exchange and 20 percent on the Market for Alternative Investment.

The research unit under the state-owned Krungthai Bank evaluated 867 company reports and found that the conflict negatively impacted 322 companies.

Half of these negative impacts were transmitted through higher costs, as companies cited rising oil and energy prices, alongside surging logistics, freight, and insurance expenses caused by route disruptions.

Revenue decline accounted for 35 percent of the negative impacts, with businesses reporting delayed consumer spending due to higher costs of living, a drop in tourist arrivals stemming from flight cancellations, and reduced exports to Middle Eastern markets.

The report indicated that 80 percent of the affected businesses are concentrated in five main industries: services, industrials, property and construction, agriculture and food, and resources.

Looking ahead, the business outlook for the geopolitical tension remains cautious, with over 90 percent of the companies negatively affected by the conflict stating that they expect the situation to either prolong or escalate throughout the rest of the year.

This sentiment was most strongly voiced by companies in the services sector, which expect their margins to be continually pressured by rising fuel costs and transportation expenses, the research unit noted.