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Shares of Larsen and Toubro (L&T) Ltd. have declined nearly 10% in two trading sessions, after the US and Israel attacked Iran on Saturday, and in response, Iran has launched a barrage of attacks across its neighbouring Gulf countries to weaken US' military bases in these nations. L&T's significant exposure to the West Asia region has the market worried.Shares of Larsen and Toubro (L&T) Ltd. have declined nearly 10% in two trading sessions, after the US and Israel attacked Iran on Saturday, and in response, Iran has launched a barrage of attacks across its neighbouring Gulf countries to weaken US' military bases in these nations. Here are the some of the important factors that the markets are worried about:L&T has a total order book, including its IT subsidiaries, of 7.3 lakh crore. Of this order book, a significant portion of that comes from the West Asia region, which is currently the centerstage for the war.As much as 37% of L&T's order book is exposed to the Middle East, as of the first nine months of the current financial year.The company continues to receive a large part of its orders from that region. A total of 33% of its order inflows in the first nine months of the financial year 2026 was from West Asia, including Saudi Arabia and the UAE.L&T has consciously increased its order book exposure to the Middle East over recent years, becoming a major beneficiary of the expansion plans of the Gulf countries, including new fuel refineries, pipelines and so on.The company's integrated supply chain relies on goods, materials movement from India. Restriction of supply is a key risk for L&T.Macquarie has noted that 55% of the company's Gulf order book is based on fixed price contracts. With the ongoing war, L&T can face margin risks as costs are likely to escalate, leading to execution challenges.There is a possibility that L&T's physical infrastructure in the Gulf countries could have sustained physical damages as Iran continues to launch strikes on these nations as a response to the US-Israel attack on Tehran on Saturday. The question is, who takes the hit of such damages and delays -- the client or L&T?Costs increase with higher crude prices, freight hike and higher insurance for logistical movements are also some other risks for the company.While Macquarie flagged a margin risk for L&T, CLSA saw this dip as a "buying opportunity". Motilal Oswal too, on Monday maintained its "buy" rating on L&T, but trimmed its price target to ₹4,400 from ₹4,600 earlier.NewsLive TVMarketPopular CategoriesCalculatorsTrending NowLet's Connect with CNBCTV 18Network 18 Group :©TV18 Broadcast Limited. All rights reserved.