Small businesses across the United States say the ongoing conflict involving the United States and Iran is beginning to hit their bottom lines, as rising fuel prices, higher supply costs and economic uncertainty ripple through the economy.
Owners of restaurants, retail stores and service companies say the impact has been immediate. Many report higher transportation costs and more expensive raw materials, which are squeezing already thin profit margins. Some business owners say the financial pressure has become so intense that they are struggling just to break even.
“I’m simply not making any money,” one small business owner said while describing the challenges of operating during the current economic uncertainty. Business owners say they are seeing higher costs for everything from fuel and shipping to food supplies and packaging.
The economic pressure is largely tied to the rising price of oil, which has surged amid tensions in the Middle East. Analysts say the conflict has disrupted global energy markets and pushed oil prices higher, leading to increases in gasoline, transportation and manufacturing costs.
Higher fuel costs are already affecting businesses that rely on transportation or deliveries. Drivers and logistics operators say they are paying significantly more for gasoline, which is cutting into earnings and forcing some companies to raise prices.
Economists warn that if the conflict continues, the economic effects could spread further across the U.S. economy. Rising energy prices could push up the cost of groceries, airline travel and everyday consumer goods while also slowing hiring and investment.
Small businesses are particularly vulnerable because they typically have fewer financial reserves and less ability to absorb sudden cost increases compared with larger corporations.
While policymakers say disruptions may be temporary, many small business owners fear prolonged instability could make it even harder to stay profitable in the months ahead.
