Marcin Frąckiewicz

March 21, 2026, 4:01 AM EDT. Tesco shares have remained steady but face significant risk from rising food price inflation, driven by costs linked to the war in Iran and disruptions in key commodity supplies such as fertiliser and urea, which have surged 50%. Investors watch how Tesco will manage input cost increases and whether it can pass these on to consumers without losing sales. The grocery sector's tight profit margins mean that failure to do so could squeeze profits. Tesco trades at a price-to-earnings ratio of 21 with a dividend yield of 3%, but war-driven inflation poses a looming threat ahead of its April 16 annual results. Past supply chain resilience offers cautious optimism.