Citigroup: Rising oil prices will impact Japanese automotive parts suppliers' stocks.

Citigroup analyst Arifumi Yoshida stated that the increase in oil prices due to attacks by the United States and Israel on Iran could result in losses for Japanese automotive parts suppliers. Yoshida wrote in a report that the sharp rise in oil prices will have a negative impact on the performance of tire manufacturers such as Bridgestone, Yokohama Rubber, and Sumitomo Rubber in the months of July to September. He said, "In the short term, this is bearish for tire stocks as it reduces the expectations for growth in the current fiscal year." Automotive manufacturers' stocks are also vulnerable to the impact of the macroeconomic environment, rising gasoline prices, and increasing prices of petroleum-based raw materials. Japanese carmaker Isuzu could be a cause for concern in the market due to its exports to the Middle East. However, hybrid car manufacturers may benefit from the rise in gasoline prices, as they have an advantage in fuel economy.