Watches and Wonders Opens Amid Middle East Economic Pressures

Geneva's Watches and Wonders fair opened on Tuesday, drawing thousands to the Palexpo convention center for the luxury watch industry's premier annual showcase amid mounting economic pressures from the ongoing Middle East conflict. The event, running through April 20, features 65 brands including Rolex, Patek Philippe, Cartier and Omega, with organizers anticipating around 60,000 visitors, up from last year's total.

The U.S. and Israeli military actions against Iran, which began on February 28, have disrupted global supply chains, elevated energy costs and hampered air travel, contributing to renewed inflation and wavering consumer confidence. These factors have rippled through the high-end watch sector, where rising prices for gold and silver already strained margins. The Middle East, accounting for nearly 10 percent of Swiss watch exports, has seen particular slowdowns, with tourist-driven sales in places like the United Arab Emirates dropping sharply due to travel restrictions and regional instability.

"The war will have a huge impact on Swiss exports because it represents 10 percent of the total," said Oliver Müller, founder of consultancy LuxeConsult. In the UAE, where...