Italian Wine Exports Stall After Iran Conflict

The Italian wine industry is already feeling the effects of the conflict in Iran, with orders stopping in about 20 markets across the Gulf and nearby countries, according to Unione Italiana Vini, or UIV. The group said those markets account for roughly €80 million in annual exports, a hit that comes as producers are also facing higher costs for packaging materials, transport and tourism-related business.

Lamberto Frescobaldi, the president of UIV, said on Thursday that the sector was seeing “the first direct damages” from the war and warned that the pressure could spread beyond trade flows. He spoke during a meeting of the association’s national council at Cantina Girlan in Cornaiano, in northern Italy’s South Tyrol region.

UIV said the disruption is arriving at a difficult moment for wineries, which are already dealing with weaker demand. The group said additional costs for dry raw materials such as glass, paper, cardboard, capsules and wire cages could raise the final price of a bottle sold for €4 by between 10% and 20%. That would be hard for producers to absorb, especially after years of margin pressure.

The association also pointed to rising freight costs. It said domestic shipping rates were already starting to increase and that international container prices could climb by 20% to 50%. Those increases would add to the strain on exporters trying to keep prices competitive in foreign markets.

The impact is not limited to logistics. UIV said the conflict could also hurt tourism and wine tourism, two channels that have become increasingly important for many Italian producers and regions. The group said it was too early to measure the full effect of possible inflation or recession risks tied to the war.

Frescobaldi urged the Italian government and the European Union to respond quickly with measures aimed at limiting the damage to the wine sector. He said producers were not in a position to absorb new shocks after already lowering export list prices in response to U.S. tariffs. According to UIV’s observatory, Italian wineries cut export prices by an average of 11% in 2025 and by 13% in the first quarter of this year for shipments across the Atlantic.

The warning adds another layer of uncertainty for a sector that has been trying to stabilize sales after a period of softer consumption. For many wineries, markets in the Gulf and neighboring countries have been a useful outlet for premium bottles and growing brands. A prolonged freeze in orders could force companies to redirect volumes elsewhere or accept lower margins at a time when costs are moving higher.

UIV’s comments came as broader concerns over Middle East instability continued to ripple through trade and financial markets. For wine exporters, the immediate issue is whether shipments can resume soon enough to avoid deeper losses in a region that has become more important for Italian labels seeking growth outside Europe and North America.