Toyota, the world's top-selling automaker, reported that operating profit for the January–March quarter fell by roughly half compared to a year earlier, to 569.4 billion yen ($3.6 billion), and forecast a further 20% decline in operating profit to 3 trillion yen for the current financial year. The company cited the ongoing Iran war's impact on the Middle East — including supply disruptions, higher energy prices, and a sharp fall in regional sales — as expected to cost around 670 billion yen in the year ahead, compounding the 1.4 trillion yen hit from U.S. tariffs that weighed on last year's results. While demand for fuel-efficient hybrid vehicles has risen amid higher energy costs, Toyota said this boost is insufficient to offset the broader pressures now facing the industry under new CEO Kenta Kon, who took the helm last month.