Source: Fortune
Summary
The Iran war is affecting small businesses in the US, with shipping disruptions and skyrocketing oil prices leading to higher gas prices and increased costs. Experts say the worst may still be yet to come. Small businesses, already dealing with the effects of President Trump’s tariff policies, are especially vulnerable to these increases. They lack the margins and reserves to absorb higher costs and shipping upheaval, and may start to feel the effects in as soon as two months.
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The numbers tell one story. Small businesses are facing a perfect storm of increased costs and shipping disruptions. The Iran war has led to higher gas prices, and the threat of attacks has halted shipping through the Strait of Hormuz. The price of Brent crude has hit a brief high of $119 a barrel, and shipping companies like Maersk have halted vessel crossings. For companies like Lobster Boys, this means higher prices for shipping products to the continental US, which are then passed on to customers. The announcement sounds familiar: small businesses are struggling to absorb the costs.
Author: Evan Null
